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SEC seeks alternative ways to serve Changpeng Zhao after failing to get him
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简介There are rumours that Changpeng Zhao could be in Dubai.There is no known base of operations for the...
- There are rumours that Changpeng Zhao could be in Dubai.
- There is no known base of operations for the Binance CEO.
- The SEC is seeking permission from the court to serve CZ lawyers on his behalf.
The United States Securities and Exchange Commission (SEC) is asking the US District Court in Washington DC for an “alternative service” to serve Changpeng Zhao, the CEO of cryptocurrency exchange Binance, with a court summons.
The SEC recently filed a lawsuit against Zhao and Binance over alleged unregistered securities operations.
The SEC’s request to US District Court in Washington DC
The SEC requested alternative service in a case document that was submitted to the District Court on June 7. The Sec justifies its blatant stance that typical service—which necessitates the recipient’s presence and signature—might be challenging in this circumstance:
In addition, the SEC requests that the court order Zhao and Binance to deliver a “sworn accounting” — a formal disclosure of financial data — right away.
According to the complaint, the SEC has not been able to determine the full extent of the defendant’s assets, the precise location of investor funds, or the condition or location of other assets that might be used to satisfy a monetary judgment against the defendant.
Once more, the SEC lists the logistical issues as a mitigating circumstance. According to the filing, BAM Trading’s “inability to provide accurate information” regarding Zhao’s whereabouts or the company’s “location abroad” is the reason for the request for a sworn accounting.
Changpeng Zhao’s physical presence for the summons
The CEO would probably not be legally required to appear in court simply to respond to the summons, despite the alleged difficulty in serving Zhao. However, the courts typically require some form of service to occur even if the defendant isn’t required to appear.
Acknowledging this, Changpeng Zhao tweeted saying:
“I was told this is just part of the SEC complaint process. Nothing new. Also told I won’t have to appear in person. No need to FUD.”
Although the whereabouts of the Chinese-born Canadian citizen Binance CEO remains unknown, Binance spokesperson Dewy Mustajab on March 28 said that the CEO splits his time between France and Dubai.
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