CZ dismisses media claim of $250M loan from Binance-affiliated BAM Management CZ dismisses media claim of $250M loan from Binance-affiliated BAM Management
Binance CEO Changpeng Zhao described the report as 'wrong information.'
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Updated: Oct. 13, 2023 at 2:52 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance CEO Changpeng ‘CZ’ Zhao described reports that he took a $250 million loan from BAM Management as “wrong information” in a Sept. 20 post on X (formerly Twitter).
Crypto media outlet Decrypt reported that Binance.US’ lawyers stated that BAM Management US Holdings issued a $250 million convertible note to Zhao in December. The media firm had relied on a June 6 court filing from the Securities and Exchange Commission’s (SEC) lawsuit against the exchange for its report.
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 exchange’s response is posted below verbatim:
“BAM Management US Holdings, Inc. issued a $250 million convertible note to Mr. Zhao in December 2022. Mr. Zhao funded the purchase of this note with BUSD, $183 million of which was sent to Paxos Trust Company, as issuer of BUSD, to convert the BUSD into USD. These funds were then transferred to BAM Trading in January 2023. “
However, Zhao countered that the media firm had gotten the direction of the fund movement wrong as he was the one who gave BAM Management a $250 million loan at an undisclosed date. He added that he had yet to take the loan back.
The relationship between Binance and its affiliate has become a major talking point in the lawsuit between the SEC and the firm. The regulator had also claimed that the crypto exchange had been uncooperative with its information-sharing process, urging the court to mandate Binance to comply with its requests.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Binance.US
Binance.US will provide secure and reliable cryptocurrency trading to users in the United States.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.