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CZ Gets Court Summons, Coinbase Undecided on Delisting Assets Following SEC Complaint

2 mins
Updated by Michael Washburn
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In Brief

  • Binance CEO Changpeng Zhao, or CZ, receives official notice of a lawsuit from a US court.
  • The SEC has accused Binance of securities law violations, including offering unregistered services and misleading investors.
  • But Coinbase has not yet made a decision on delisting assets in response to the SEC action.
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A US court has slapped Binance CEO Changpeng Zhao, otherwise known as CZ, with a summons on behalf of the Securities and Exchange Commission (SEC). The agency has hurled accusations against Binance of securities law violations, including offering unregistered services and misleading investors. Even so, Coinbase remains undecided on delisting the alleged violator’s assets.

The crypto industry took note as US officials hit Binance’s CEO with a lawsuit amid an intensifying crackdown. The US court addressed the summons to his residence in Malta, where Binance was previously headquartered. Little other information is available at present.

CZ Receives a Summons

The document says Zhao has to respond within 21 days. Although, this does not necessarily mean he will have to appear in person. Zhao is a citizen of Canada and not the United States.

Binance, the world’s largest cryptocurrency exchange by trading volume, and its CEO, face 13 charges of violating securities laws from the SEC.

Source: Courtlistener

The SEC accuses Binance and CZ of an array of violations. The most serious include offering unregistered services and misleading investors. Not to mention lying about trading controls, commingling customer assets, and engaging in manipulative trading.

Despite claims of independent operations, the SEC also alleges that CZ and Binance secretly controlled Binance.US.

Learn about one of the most consequential crypto court cases in history:

Everything You Need To Know About Ripple vs SEC

Binance has forcefully denied the allegations. In a statement provided to BeInCrypto, the exchange said it would “continue to vigorously defend our business and this technology.”

BeInCrypto has reached out to Binance for further comment.

Coinbase Undecided on Delisting Assets

Should exchanges delist the assets of a firm in the SEC’s crosshairs? Even as the legal actions progress, Coinbase appears to be weighing its options.

According to an upcoming episode of the crypto podcast The Scoop, Coinbase has not decided on the delisting of any assets following the SEC action. Coinbase Chief Legal Officer Paul Grewel said: “We have made no decision at all to delist assets, and we remain confident in our original analysis.”

On Monday, in the 136-page complaint against Binance, the SEC identified several crypto assets as securities. These included Binance Coin (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), and Cosmos (ATOM). However, the complaint did not mention Ethereum (ETH).

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Josh Adams
Josh is a reporter at BeInCrypto. He first worked as a journalist over a decade ago, initially covering music before moving into politics and current affairs. Josh first owned Bitcoin in 2014 and has followed the space ever since. He is particularly interested in Web3 adoption, policy and regulation, CBDCs, privacy, and the future of the metaverse.
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