The U.S. Securities and Exchange Commission (SEC) has reportedly ordered Zhao Changpeng, CEO of crypto exchange Binance, to appear in court. Tweet Fox Business reporter Eleanor Tellett reports today.
of subpoenaThe document, shared by Terett, gives Zhao and his affiliates a 21-day grace period to respond. Failure to respond within this period will result in a default judgment against Mr. Zhao and his company.
At the time of writing, it is unclear whether Mr. Zhao has been formally served with court papers.
The potential impact of default judgment could be significant for Zhao and Binance. This may lead to fines, penalties, or other regulatory actions that may affect the functioning of cryptocurrency exchanges.
Zhao, popularly known as “CZ” in the crypto world, has yet to publicly comment on the situation.
The SEC’s court order for Zhao is a clear sign of increased regulatory focus on the burgeoning cryptocurrency sector. As the situation unfolds, market participants and observers will be closely monitoring Zhao’s response and its potential impact on Binance and the broader cryptocurrency market.
This is breaking news. Details will be announced later.
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