Binance CEO Changpeng Zhao Denies $250 Million Loan Allegation Amid SEC Lawsuit
In the midst of an ongoing legal battle between cryptocurrency exchange giant Binance and the United States Securities and Exchange Commission (SEC), a recent report has sparked controversy over a $250 million loan. On September 19, Decrypt, a prominent media outlet in the blockchain and cryptocurrency sphere, released an article that alleged Binance CEO Changpeng Zhao received a substantial loan from BAM Management, a company closely associated with Binance.US. However, Zhao took to social media, specifically X (formerly Twitter), to dispute this claim, setting the record straight.
The Decrypt report, which relied on court documents pertaining to the lawsuit between Binance and the SEC, asserted that Binance.US’ legal team had revealed BAM Management US Holdings issued a $250 million convertible note to Changpeng Zhao in December. The news sent shockwaves throughout the crypto community, raising questions about the financial dealings of one of the industry’s most prominent figures.
The amount of wrong information is just…
They got the direction wrong. I loaned $250 million to BAM a while back, not the other way around. And have not taken it back. 🤷♂️ pic.twitter.com/encGx1u557
— CZ 🔶 Binance (@cz_binance) September 20, 2023
In response to the report, Changpeng Zhao shared a screenshot of the Decrypt article on his X profile, where he expressed his disagreement with the claims made in the article. Zhao, who is widely known as CZ in the crypto world, stated that Decrypt “got the direction wrong.” According to CZ, it was he who had extended a $250 million loan to BAM Management, not the other way around, as the report had suggested.
In his X post, CZ shed light on the situation, explaining that he had provided BAM Management with a significant loan, but had not yet reclaimed the funds. This revelation directly contradicted the narrative put forth in Decrypt’s article. The Binance CEO emphasized that the report contained “wrong information” without specifying which aspects of the story were inaccurate.
This public dispute has ignited a fervent discussion within the cryptocurrency community, with many observers seeking clarity on the financial interactions between CZ and BAM Management. In the absence of further details, questions linger about the nature and terms of the loan, as well as the implications it may have on Binance’s ongoing legal tussle with the SEC.
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