Changpeng Zhao summoned in SEC lawsuit by US court

The recent lawsuit by the Securities and Exchange Commission (SEC) against Binance, accusing them of conducting unregistered securities operations, has led to a summons being issued for Binance CEO Changpeng Zhao. The summons was delivered promptly, just two days after the SEC’s legal action, and Zhao is legally obligated to address it once it is officially served. Binance and Zhao have a 21-day period to provide a response after the service is completed. Failure to respond within the specified timeframe may result in a default judgment being entered against them.

Changpeng Zhao, also known as CZ, currently resides in Malta. Following the news of the summons, Zhao took to Twitter to remind his followers that this action is “nothing new” and there is “no need to FUD” (fear, uncertainty, and doubt).

The SEC’s lawsuit against Binance came shortly after they targeted Coinbase, another leading cryptocurrency exchange, on similar grounds. The SEC alleged that certain popular cryptocurrencies offered by Coinbase, such as Solana (SOL), Polygon (MATIC), and The Sandbox (SAND), meet the criteria to be classified as securities.

The court order requiring Zhao to appear in court reflects the increasing regulatory scrutiny faced by the cryptocurrency industry. Market participants and observers are closely monitoring Zhao’s response and its potential implications for the broader crypto market. Despite the SEC’s actions against Binance and Coinbase, the community has shown unity, with notable members expressing their disagreement with the SEC’s actions.

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