CZ Receives Summons From Washington County Court In Battle With SEC

Key Points:

• Binance crypto executive Changpeng Zhao (CZ) said he had received a summons from the Washington District Court.
• This is only part of the SEC compliance process.
• He does not need to appear in person and will have 21 days to respond and comply with the summons.

According to a personal Twitter post by Binance CEO Changpeng Zhao (CZ), he has received a summons from the Washington District Court. This order was issued in the context of the US Securities and Exchange Commission (SEC) having filed a lawsuit against Binance exchange two days earlier.

Furthermore, a paragraph in the court order also states that CZ needs to be summoned because “a new lawsuit filed against CZ” exists. This confirmed the summons to be related to recent SEC action.

According to the Binance director, this is only part of the SEC compliance process, stating that he will not have to appear in person. He would have 21 days to respond and comply with the summons.

The crypto market has been flooded with unexpected news in the last two days. Specifically, the two largest crypto exchanges in the market, Binance, and Coinbase, have faced legal action from the SEC for violating US securities laws.

On June 5, the US Securities and Exchange Commission filed a lawsuit against Binance with 13 allegations. One of the allegations in the lawsuit alleges that funds from Binance and Binance.US were mixed into an account controlled by Merit Peak Limited involving Changpeng Zhao.

Another allegation is that Binance.US conducted money laundering transactions through a secret Market Maker (MM) called Sigma Chain, also owned by CZ. Thereby, the SEC filed a court application to freeze the assets of Binance US. Then one day, the SEC also sued Coinbase for the same reason.

Following the lawsuits, more than 61 coins were classified as securities by the SEC. In response, the Binance side objected, and a statement that it is ready to fight the SEC in the lawsuit while always complying with US laws. Coinbase has also taken similar action.

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