Binance CEO Changpeng ‘CZ’ Zhao has denied reports claiming that he took a $250 million loan from BAM Management. In a recent post on X (formerly Twitter), CZ described the reports as “wrong information.” The news had surfaced after a court filing from the Securities and Exchange Commission (SEC) mentioned the loan in its lawsuit against Binance.
According to the court filing, the SEC had asked Binance.US to explain why Paxos had transferred $183 million to BAM Trading in January 2023. The response stated that BAM Management had issued a $250 million convertible note to CZ in December 2022, with CZ using BUSD to fund the purchase of the note. However, CZ clarified that the media had gotten the direction of the fund movement wrong and that he was the one who had given BAM Management a $250 million loan. He also confirmed that he had yet to take the loan back.
The relationship between Binance and its affiliate, BAM Management, has become a significant point of discussion in the ongoing lawsuit with the SEC. The regulator has accused Binance of being uncooperative, urging the court to compel the exchange to comply with its requests for information. CZ’s denial of the $250 million loan adds another layer to the legal battle between Binance and the SEC.
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