The CEO of popular cryptocurrency exchange, Binance, Changpeng Zhao (CZ), has been issued with a summons by the US District Court in Washington, D.C. The summon came just two days after the US Securities and Exchange Commission (SEC) sued Zhao and Binance for alleged securities violations. According to court documents, CZ’s address is listed as Sliema, Malta, and he has 21 days to respond to the summons. However, he is not required to appear in person. If he fails to respond, “judgment by default will be entered against [him] for the relief demanded in the complaint,” the summons reads.
As of writing, Zhao has not commented on the news development. This is a developing story, and more information is expected to surface in the coming weeks.
This news comes amidst increased scrutiny of cryptocurrency exchanges by regulatory bodies across the globe. The SEC has been particularly active in cracking down on crypto-related violations in recent months.
However, some experts believe that government regulation could ultimately benefit the cryptocurrency industry by fostering greater mainstream adoption and increasing investor confidence.