Binance CEO Changpeng Zhao took to social media to refute recent reports that he had taken out a $250 million loan from BAM Management. Zhao stated that the information was “wrong” and that he had not taken any such loan from the company.
The reports stemmed from crypto media outlet Decrypt, which cited lawyers for Binance.US saying in a June court filing that BAM Management issued a $250 million convertible note to Zhao back in December 2022. Decrypt’s report was based on legal filings related to the ongoing lawsuit brought against Binance by the Securities and Exchange Commission.
Specifically, the SEC filing revealed that regulators had questioned Binance.US about why fintech firm Paxos had transferred $183 million to BAM Trading in January 2023. Binance.US responded by saying that BAM Management had provided Zhao with a $250 million convertible note, which Zhao funded by converting BUSD stablecoins into USD via Paxos.
However, Zhao asserted that Decrypt had gotten the facts wrong. He stated that he was actually the one who had provided a sizable loan to BAM Management, not the other way around. Zhao added that he has yet to recall this loan, though he did not specify when exactly he had provided the funding.
The tangled relationship between Binance and its affiliate BAM has become a major point of scrutiny in the ongoing legal battle between the exchange and the SEC. Regulators claim that Binance has been uncooperative with requests for information, even urging the court to compel the company to comply fully with the probe.
