Binance CEO Disputes Decrypt Report, Claims He Loaned $250M to BAM Management
Summary:
Changpeng Zhao, Binance CEO, has disputed a Decrypt report claiming that he borrowed $250 million from BAM Management. Zhao clarified on social media that it was he who loaned $250 million to BAM and hasn't taken it back. Amidst an ongoing legal dispute with the SEC, Binance faces demands for more transparency and access to its executives. However, a judge has stated he is currently disinclined to allow an audit.
Changpeng Zhao, CEO of Binance, has contested a recent news piece which reported that he borrowed a hefty sum of $250 million from BAM Management, the company responsible for holding Binance.US' assets. This report, published on September 19 by Decrypt, was a review of legal documents tied to an ongoing legal dispute between Binance and the United States Securities and Exchange Commission (SEC). Decrypt's interpretation suggested that Binance US's legal representatives stated in these documents that, in December, BAM Management US Holdings had granted a $250 million convertible note to Zhao. However, Zhao disputed this interpretation on social media platform X (priorly known as Twitter), stating that not only was the information incorrect, but it was also misleading. In reality, Zhao clarified, it was he who had loaned BAM Management the $250 million, and that he had yet to recoup it. He expressed frustration at the inaccuracies in the report, although he didn't further clarify the details that were misrepresented.
Amidst Binance's legal woes with the SEC, the commission has continually complained about difficulties obtaining information from Binance and Binance.US since the lawsuit's inception. This pushed the SEC to file a motion demanding that Binance's executives be more accessible for questioning and disclose more detailed data. On the other hand, in a recent adjudication to deliberate this specific SEC proposition, the judge remained unswayed, stating he was not currently considering permitting the audit. Recent reporting has followed other Binance news including an executive exodus, an intention for Nasdaq to transact AI orders, and SBF's failed bail appeal.
Published At
9/20/2023 11:32:20 AM
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