Crypto kingdom Binance‘s CEO, CZ, is currently busy addressing various allegations that have emerged recently. Today, there were allegations related to the lawsuit on his agenda. The SEC‘s various charges have been in the headlines since the hearing on Monday. The regulatory body claims that the exchange, which serves US citizens, took significant risks and that its customers were unaware of them.
Statements by Binance CEO
The latest documents related to the Binance lawsuit were analyzed in a report prepared by Decrypt. The report states that Binance’s legal team in the US claimed that BAM Management US Holdings gave Zhao a $250 million convertible note in December. However, CZ clarified today that he was not the recipient of the loan but the lender. CZ also announced that he did not recover the loan from his X account.
CZ stated that there is a lot of misinformation in the recent report but did not provide further details. In a statement made yesterday, he clarified that there is no relationship between Ceffu and Binance US. The documents released on Monday revealed that the SEC has consistently struggled to obtain information from Binance Global and Binance US officials.
Binance and its Future in the US
Binance’s disregard for local regulators has been a significant factor in its success so far. For example, Binance customers have been able to access futures trading in regions where it is prohibited. This formed the basis of the CFTC’s lawsuit filed earlier this year. In the future, other regions may file lawsuits against the exchange for offering services that are prohibited in their jurisdictions. However, Binance sees flexibility and expansion as a rational path to growth and survival. This is why Gensler has repeatedly stated, “They chose to grow at the risk of penalties, and they accepted the bill.”
At this stage, Binance will need to clean up its past actions that are considered illegal under US laws. It will be challenging for the company to achieve a decisive victory in court because CZ himself acknowledged in 2021 that they should establish better relationships with regulators and comply with the rules. Therefore, Binance has expanded its compliance team to take a proactive approach to regulatory compliance.
CZ and his team are now prepared to resist through the legal process. Their belief in the future of the US market is likely the reason why they are not giving up on this region easily. While they may easily withdraw from many regions, they are determined to fight in the US.
Looking ahead, when the court cases conclude, Binance may be required to pay significant fines. However, it will still seek to maintain its presence in the region, even if it has to operate under a different name.
