Binance CEO Changpeng ‘CZ’ Zhao described stories that he took a $250 million mortgage from BAM Administration as “flawed data” in a Sept. 20 post on X (previously Twitter).
Crypto media outlet Decrypt reported that Binance.US’ attorneys acknowledged that BAM Administration US Holdings issued a $250 million convertible be aware to Zhao in December. The media agency had relied on a June 6 court docket submitting from the Securities and Alternate Fee’s (SEC) lawsuit in opposition to the trade for its report.
In keeping with the court filing, the SEC had requested Binance.US to clarify why Paxos had transferred $183 million to BAM Buying and selling in January 2023. The trade’s response is posted beneath verbatim:
“BAM Administration US Holdings, Inc. issued a $250 million convertible be aware to Mr. Zhao in December 2022. Mr. Zhao funded the acquisition of this be aware with BUSD, $183 million of which was despatched to Paxos Belief Firm, as issuer of BUSD, to transform the BUSD into USD. These funds have been then transferred to BAM Buying and selling in January 2023. “
Nevertheless, Zhao countered that the media agency had gotten the course of the fund motion flawed as he was the one who gave BAM Administration a $250 million mortgage at an undisclosed date. He added that he had but to take the mortgage again.
The connection between Binance and its affiliate has develop into a serious talking point within the lawsuit between the SEC and the agency. The regulator had additionally claimed that the crypto trade had been uncooperative with its information-sharing course of, urging the court docket to mandate Binance to adjust to its requests.
The publish CZ dismisses media claim of $250M loan from Binance-Afilliated BAM Management appeared first on CryptoSlate.
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