Binance CEO Changpeng Zhao has refuted recent claims suggesting he borrowed $250 million from BAM Management, the entity overseeing Binance.US. This report emerged following an interpretation of court documents related to the ongoing lawsuit between Binance and the United States Securities and Exchange Commission (SEC).
According to a report by Decrypt, the legal team representing Binance US stated in these documents that BAM Management US Holdings had issued a $250 million convertible note to Zhao in December. However, Zhao contested this claim, clarifying the direction of the transaction on Twitter.
In his tweet, Zhao shared a screenshot of the report and asserted that the report had “got the direction wrong.” He clarified that he had actually loaned $250 million to BAM Management, rather than the other way around, and had not yet reclaimed the funds.
While Zhao acknowledged the presence of misinformation in the report, he did not specify the inaccuracies. This dispute over the loan follows the ongoing legal battle between Binance and the SEC, during which the SEC has faced challenges in extracting information from the exchange and its subsidiary, Binance.US. In response, the SEC has sought to compel Binance to make its executives more available for depositions and share detailed information. However, a recent hearing did not favor the SEC’s request.