Adam Moskowitz Files for Deposition from Ex-Binance CEO in $1bn Lawsuit
Summary:
Prominent legal counsel Adam Moskowitz filed a motion for a deposition from ex-Binance CEO, Changpeng "CZ" Zhao in a $1 billion lawsuit against Zhao, Binance, and several crypto influencers. Moskowitz has represented clients in previous high-profile cases involving crypto firms. The deposition from Zhao, who pleaded guilty to federal charges in a $4.3 billion settlement, is viewed as potentially beneficial to the plaintiffs' claims. The case alleges that Binance promoted unregistered securities.
Prominent legal counsel in various cryptocurrencies-related lawsuits, Adam Moskowitz, has applied for a deposition from the ex-CEO of Binance, Changpeng “CZ” Zhao. The motion was filed on December 8 in the U.S. District Court for the Southern District of Florida Miami Division. Moskowitz emphasized that Zhao's statement would be decisive for both the claims and defenses of all participants. The plea is significant in a lawsuit totalling $1 billion, where Zhao, Binance, and various crypto influencers are defendants. The court ruled for a stay on proceeding in August.
Moskowitz and his legal team have previously represented many individuals in cases against prominent cryptocurrency companies and related entitities. They handled cases for victims of the collapse of the FTX exchange and a lawsuit alleging losses due to the promotion of Binance’s nonfungible tokens by soccer celebrity Cristiano Ronaldo.
“In a typical scenario, as CZ is defendant, we would simply issue a notice of deposition,” Moskowitz announced to Cointelegraph. “However, in this case, we had a consensus to pause on discovery until Binance’s request for us to undertake class action before the AAA arbitration association is determined by the judge. Regardless of the outcome, CZ’s testimony will be quintessential for everyone involved.”
The lawyer affirmed this filing was a result of a decree by a Washington judge requiring Zhao to stay in the U.S. until his sentencing in February 2024. Recently, U.S. officials declared a $4.3 billion settlement with Binance wherein CZ resigned as CEO and ceded to a single felony charge.
“Since we remain unaware of CZ’s prison sentence, which could range from nil to sixty years, and as we weren’t privy to the discussions involving CZ and the government," said Moskowitz. "If he avoids prison time, he’ll possibly escape back to the UAE. If he’s incarcerated, arranging a deposition from prison isn’t easy."
According to Moskowitz, Zhao’s guilty plea in the federal charges, which condemned absence of control measures during his Binance tenure, might support certain allegations by the plaintiffs in the civil lawsuit. The lawsuit accused Binance of endorsing unregistered securities although the U.S. SEC - securites regulator - was not involved in the settlement deal with Zhao’s company and government.
“The SEC hasn’t decelerated their lawsuit against CZ and Binance, still alleging that the BNB token is an unregistered security. Therefore, an assumed $4 billion value could potentially be nullified instantly,” he further specified.
It remains uncertain if a judge will approve Moskowitz’s request, as Zhao has stepped down as CEO of Binance and has receded from the executive role. Despite attempts by Cointelegraph to contact Binance, no response was received at press time.
Related: Binance's decision to withdraw licensing proposal for Abu Dhabi has no connection with U.S. settlement, claims Moskowitz.
Published At
12/9/2023 12:30:00 AM
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