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News

CZ Denies BAM Management’s $250M Loan: “They Got The Wrong Direction!”

September 20, 2023 - Around 2 mins mins to read

Key Points:

  • Binance CEO Changpeng ‘CZ’ Zhao refutes reports of borrowing $250 million, clarifying he had actually lent the amount to BAM Management.
  • The dispute stems from a Decrypt report that relied on an SEC court filing, questioning a $183 million transfer in January 2023.
  • Binance.US faces SEC allegations regarding custody practices.
Binance CEO Changpeng ‘CZ’ Zhao has refuted reports that he borrowed $250 million from BAM Management, asserting that the information is incorrect.
220110231738 changpeng zhao file 11192021 restricted edited scaled
CZ Denies BAM Management's $250M Loan: "They Got The Wrong Direction!" 2

In a recent post on X (formerly Twitter), CZ responded to Decrypt‘s previous claim that he had borrowed the substantial sum from BAM Management U.S. Holdings. Hey:

“I loaned $250 million to BAM a while back, not the other way around. And have not taken it back.”

Decrypt’s initial report had relied on a June 6 court filing from the Securities and Exchange Commission (SEC) regarding its lawsuit against Binance.US. The SEC had questioned Binance.US about a $183 million transfer from Paxos to BAM Trading in January 2023.

CZ posted a screenshot of Decrypt‘s report, stating that the outlet had “got the wrong direction.”

One user humorously joked about whether CZ and Elon Musk were having problems with media sites. Binance’s CEO responded:

This controversy follows previous allegations by the SEC that Binance.US may have used a custody unit linked to its parent company, potentially exposing clients to a foreign entity.

In a September 12 court filing, Binance.US revealed its use of wallet custody software developed by BHL, referred to as Ceffu, to manage customers’ digital assets. CZ firmly denied any use of Ceffu or Binance Custody by Binance.US.

The dispute between Binance.US and the SEC is currently ongoing in a Washington, DC court. CZ’s statement seeks to clarify the nature of the financial transaction, emphasizing that he extended a loan to BAM Management rather than borrowing from them.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

BAM Management

BAM Trading

Binance

Binance.US

Ceffu

Changpeng Zhao

CZ

SEC

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

CZ Denies BAM Management’s $250M Loan: “They Got The Wrong Direction!”

Key Points:

  • Binance CEO Changpeng ‘CZ’ Zhao refutes reports of borrowing $250 million, clarifying he had actually lent the amount to BAM Management.
  • The dispute stems from a Decrypt report that relied on an SEC court filing, questioning a $183 million transfer in January 2023.
  • Binance.US faces SEC allegations regarding custody practices.
Binance CEO Changpeng ‘CZ’ Zhao has refuted reports that he borrowed $250 million from BAM Management, asserting that the information is incorrect.
220110231738 changpeng zhao file 11192021 restricted edited scaled
CZ Denies BAM Management's $250M Loan: "They Got The Wrong Direction!" 4

In a recent post on X (formerly Twitter), CZ responded to Decrypt‘s previous claim that he had borrowed the substantial sum from BAM Management U.S. Holdings. Hey:

“I loaned $250 million to BAM a while back, not the other way around. And have not taken it back.”

Decrypt’s initial report had relied on a June 6 court filing from the Securities and Exchange Commission (SEC) regarding its lawsuit against Binance.US. The SEC had questioned Binance.US about a $183 million transfer from Paxos to BAM Trading in January 2023.

CZ posted a screenshot of Decrypt‘s report, stating that the outlet had “got the wrong direction.”

One user humorously joked about whether CZ and Elon Musk were having problems with media sites. Binance’s CEO responded:

This controversy follows previous allegations by the SEC that Binance.US may have used a custody unit linked to its parent company, potentially exposing clients to a foreign entity.

In a September 12 court filing, Binance.US revealed its use of wallet custody software developed by BHL, referred to as Ceffu, to manage customers’ digital assets. CZ firmly denied any use of Ceffu or Binance Custody by Binance.US.

The dispute between Binance.US and the SEC is currently ongoing in a Washington, DC court. CZ’s statement seeks to clarify the nature of the financial transaction, emphasizing that he extended a loan to BAM Management rather than borrowing from them.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.