Court Documents Provides Validation for Binance, CEO Says

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Court Documents Provides Validation for Binance, CEO Says

Binance CEO, Changpeng Zhao stated in a recent tweet that documents from the court have provided validation for the crypto exchange company. As regulatory scrutiny continues to sweep through the entire crypto industry, Binance has remained at the center of attention.

The world’s largest cryptocurrency exchange in recent times has been facing challenges from regulatory bodies across the world. However, in a June 18 tweet from CZ, he pointed out that regulatory “Scrutiny provides validation,” making reference to a recent document from the court regarding its case with the SEC.

Recall that the Securities and Exchange Commission filed a TRO (temporary restraining order) motion against Binance.US requesting an asset freeze alleging mishandling of customers’ funds.

However, a United States District Judge urged that the SEC and Binance work towards a compromise to prevent a total asset freeze. Amidst the legal tussle, the crypto firm receives important validation in a recent court transcript that shed more light on the ongoing investigation.

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According to the document, the regulatory body has no evidence that Binance was involved in the mishandling of the customer’s funds, stating that there is “no evidence of any dissipation of assets whatsoever.”

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“… Similarly, you all repeat in the memo that there’s no evidence, absolutely no evidence of any dissipation of assets whatsoever. And the government at this point has said they haven’t seen the evidence of offshore transfers from BAM Trading itself… ” the court statement reads.

Scrutiny provides validation

The courts’ statement in this document asserts that the accusations that Binance was involved in illicit activities hold no grounds as there is a lack of evidence to back the allegation.

Moreover, such an assertion from a court offers credibility to CZ and Binance’s claims that the company has been following laid down rules and offers transparency in its services.

Meanwhile, the top crypto company has been facing challenges recently across the globe. Last week, Binance applied to be deregistered from Cyprus. Similarly, it announced on June 16 that it will be departing the Netherlands market after failing to obtain a virtual asset service provider (VASP) license.

In Africa, Binance had to deal with the Nigerian Securities and Exchange Commission which stated that the company’s operation in the country is illegal. However, CZ took to Twitter over the weekend to declare that Binance has issued a “cease & desist notice to the scammer entity “Binance Nigeria Limited,” stating that his company is in no way affiliated with the named entity.

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Victor Nnamdi Igbor "Swaezy" is a crypto enthusiast and writer with over 8 experience in blogging. He is an easy person and when not working, loves to have a good time.