- Binance CEO Changpeng Zhao disputes a report claiming he took a $250 million loan from BAM Management, stating the report misinterpreted the situation.
- Amid its ongoing legal dispute with the U.S. SEC, Binance faces allegations that wallet provider Ceffu has significant ties to Binance.
Binance CEO Changpeng Zhao has challenged the accuracy of a recent report alleging that he obtained a $250 million loan from BAM Management, a company associated with Binance.US’ parent company.
On September 19, a report by Decrypt, referencing court documents related to the legal dispute between Binance and the United States Securities and Exchange Commission, stated that Binance.US’ legal representatives asserted in the documents that BAM Management US Holdings had “issued a $250 million convertible note to Zhao in December.” However, Zhao has refuted this report and shared his disagreement with X, formerly Twitter.
In a post, Zhao presented a screenshot of the report and contended that the publication had “misinterpreted the situation.” According to the Binance CEO, the loan transaction occurred in the opposite direction. He clarified in the X post that he was the party who extended a $250 million loan to BAM Management and asserted that he had not yet received repayment.
The amount of wrong information is just…
They got the direction wrong. I loaned $250 million to BAM a while back, not the other way around. And have not taken it back. 🤷♂️ pic.twitter.com/encGx1u557
— CZ 🔶 Binance (@cz_binance) September 20, 2023
Furthermore, the Binance executive suggested in the post that there might be a considerable amount of “inaccurate information” within the report. However, Zhao did not elaborate on which specific details in the report were erroneous.
Binance’s Ceffu Wallet Conflict
This development follows a report from September 19, which detailed a legal dispute between the U.S. SEC and Binance.US, the latter being operated by BAM. The disagreement revolves around the management and protection of customer assets, with a crucial court hearing scheduled for October 12.
At the heart of this conflict is an entity known as “Ceffu,” which the SEC asserts is a “newly rebranded Binance Entity” deeply involved in safeguarding customer assets. However, Zhao vehemently refuted these allegations, describing them as “completely unfounded.”
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Over the past two days, it seems the CEO has had to contend with a series of allegations of incorrect information. In its latest legal action against BAM, the parent company of Binance.US, the U.S. Securities and Exchange Commission (SEC) has reiterated its stance that wallet provider Ceffu has unmistakable connections to Binance. These claims directly challenge Binance’s previous declarations in court filings
Binance Vs SEC
Earlier this year in June 2023, the U.S. Securities and Exchange Comission (SEC) filed a lawsuit against Binance.US for allegedly violating the securities laws. In the midst of its legal dispute with Binance, the SEC has consistently asserted its difficulties in obtaining information from both Binance and Binance.US since the lawsuit’s initiation.
As a result, the SEC has submitted a motion requesting that Binance make its executives more accessible for depositions and provide comprehensive information. Nevertheless, during a recent hearing addressing the SEC’s motion, a judge expressed reluctance to grant the inspection at this time.
After the SEC lawsuit, Binance.US has witnessed a massive drop in the exchange’s trading volume. Additionally, there’s also been a major shake-up in the leadership at Binance.US. Amid all the rumors surrounding CZ’s inappropriate use of funds, the BNB price has come under pressure.