Changpeng Zhao (CZ), the CEO of Binance, has vehemently denied recent reports suggesting that he received a $250 million loan from BAM Management, the holding company for Binance.US. The controversy emerged in the wake of a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Binance, which Decrypt reported on.
Decrypt’s analysis of court documents related to the SEC’s lawsuit had initially alleged that CZ Zhao obtained a $250 million loan. The documents indicated that Binance.US’s legal team stated that CZ Zhao had received a $250 million convertible note from BAM Management US Holdings in December.
CZ Zhao, in response, took to social media (formerly Twitter) to challenge this assertion. He posted a screenshot of the report and clarified, “They got the direction wrong.” He emphasized, “I loaned them $250 million, not the other way round.” CZ Zhao further explained that it was BAM Management that owed him money, contrary to the reported claims.
While disputing the loan narrative, CZ Zhao did not specify other inaccuracies in the report. As the legal battle between Binance and the SEC continues, the regulatory agency has claimed difficulties in obtaining information from both Binance and Binance.US. Consequently, the SEC filed a motion seeking greater accessibility to Binance executives for depositions and more comprehensive information disclosure.
However, the judge overseeing the SEC’s motion hearing expressed reluctance about granting the request, indicating that he was not inclined to allow the inspection at this juncture.
