Recently, the United States Securities and Exchange Commission (SEC) filed a summons for the CEO of Binance to the US District Court for the District of Columbia.
According to the summons document, CZ (Changpeng Zhao) will have a period of 21 days to respond to the summons and comply with the court’s request. In the event that CZ fails to comply or does not respond within this time limit, the court has the power to issue a default judgment.
The potential consequences of this default ruling could be critical for CZ and Binance. It can lead to various penalties and legal actions that can affect the operation of this cryptocurrency exchange.
However, since the summons has not been officially executed, the 21-day deadline for CZ to respond has not been counted at this time.
According to the latest information, the summons for the CEO of Binance was issued just 2 days after the US Securities and Exchange Commission (SEC) filed a lawsuit against the exchange.
The CZ summons request from the SEC shows how tough and drastic the regulator is in cracking down on the crypto industry. The court order also mentions “a new lawsuit has been filed against CZ”, indicating an increasingly tense legal situation.
In the first reaction, Changpeng Zhao (CZ) has affirmed that he will not appear in court, at least for the time being. According to CZ, the summons is only one part of the SEC’s legal process and is not more significant than that.
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