Zhao once again uses X to disperse the cloud of rumors.
Changpeng Zhao, the cryptocurrency exchange Binance CEO, has disputed recent media reports suggesting that he accepted a $250 million loan from BAM Management, the holding company behind Binance.US.
The initial claims about the alleged loan surfaced in an article published on September 19th. The article cited legal documents from an ongoing lawsuit between Binance and the US Securities and Exchange Commission (SEC).
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According to the source, the documents disclosed that BAM Management had "issued a $250 million convertible note to Zhao in December."
Reacting swiftly to these allegations, Zhao took to social media platform X to clarify the situation. He contended that the source had misunderstood the flow of money, stating that he had actually provided a loan of $250 million to BAM Management, not received one. Moreover, Zhao noted that the loan had not yet been repaid.
In the same post, Zhao hinted at additional errors in the story but chose not to specify which other details were incorrect. It is not the first time in recent weeks that Zhao used X to clear the air about various allegations. On September 7th, Binance's CEO refuted claims that the crypto exchange is facing financial issues.
His refutation adds a layer of complexity to the ongoing legal issues between Binance and the SEC. The regulatory agency has repeatedly expressed frustrations about the lack of cooperation from Binance and its US subsidiary in providing necessary information.
The clarifications by Changpeng Zhao put a spotlight on the importance of accurate reporting in the fast-paced world of cryptocurrencies. With both the SEC and the courts involved, it's evident that the ecosystem remains under scrutiny. As things stand, while the lawsuit between Binance and the SEC continues, it is crucial for both media and the broader crypto community to exercise diligence in separating fact from fiction.
