SEC can’t find Binance CEO Changpeng Zhao, asks court for ‘alternative service’
The United States Securities and Exchange Commission (SEC) is seeking ‘alternative service’ from the U.S. District Court in Washington, D.C., to issue a legal summons to Changpeng Zhao, the CEO of cryptocurrency exchange Binance.
Zhao and Binance were recently sued by the SEC over alleged unregistered securities operations.
Related: SEC sues Coinbase for breaking US securities rules
In a case document filed with the District Court on June 7, the SEC requested alternative service. It explains its evident stance that typical service (which requires the presence and signature of the person being served) might prove difficult in this case:
Despite the purported difficulty in serving Zhao, the CEO would likely not be legally required to make a court appearance merely to respond to the summons; however, the courts typically require some form of service to occur even if the defendant isn’t required to appear.
I was told this is just part of the SEC compliant process. Nothing new. Also told I won't have to appear in person. No need to FUD. pic.twitter.com/NYUlBCIirG
The SEC also asks the court to order Zhao and Binance to promptly provide a “sworn accounting” — essentially a legal disclosure of financial information.
Per the complaint, the SEC has been unable to discern the full extent of the defendants’ assets, the exact whereabouts of investor money, or the status or location of other assets that may be used to satisfy a money judgment against the defendants.
Again, the SEC cites the logistical concerns as mitigating factors. The filing states that the request for a sworn accounting stems from “BAM Trading’s inability to provide accurate information” concerning the whereabouts of Zhao or the company’s “location abroad.”
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