In the midst of a storm stirred by a lawsuit from the Securities and Exchange Commission (SEC), Binance CEO Changpeng Zhao (CZ) has penned an open letter to his employees. The letter, a beacon of transparency and resilience, addresses the allegations head-on, clarifies misconceptions led by recent leaked chats, and reaffirms Binance’s unwavering commitment to its users.
CZ Challenges SEC’s ‘Absurd’ Use Of Employee Chats As Legal Evidence
In a recent internal letter to Binance employees, CEO Changpeng Zhao (CZ) addressed the ongoing lawsuit from the Securities and Exchange Commission (SEC). The lawsuit, which has been a topic of intense discussion, was fueled by a disclosed chat between Binance’s former head of compliance, Sam Lim, and former head of business development, Alvin. The chat suggested that Binance was operating as an unlicensed exchange in the USA, and that its native token, BNB, could potentially drop to zero.
In the viral chats that have become a focal point of the SEC lawsuit, Alvin was advised by Sam Lim to convert his BNB bonus into USDT, citing the compliance side of the business as a “sinking ship.” Lim expressed his discomfort with the risk-reward balance and his reluctance to sign off on OFAC compliance matters.
Lim revealed that he had been offered the Chief Compliance Officer (CCO) position by CFO Wei Zhou, with the promise of double pay, but he declined. He hinted that Zhou and CZ were fully aware of the reasons behind the reluctance to sign off on OFAC reporting. Lim, as the top-ranking compliance officer at the time, candidly stated, “there is no f**king way we are clean,” adding that he had seen no evidence to the contrary.
CZ’s letter, which was exclusively obtained by Odaily Planet Daily, emphasized Binance’s commitment to transparency and cooperation with investigators. He clarified that Binance does not monitor employee chats and expressed his surprise at the SEC’s use of such chats as evidence, calling it “absurd.”
Binance’s Legal Team Will Handle The SEC
In response to the viral chats, CZ addressed the issue head-on. He acknowledged the damage done to Binance’s reputation by what he termed as a “personal” complaint made by two individuals five years ago. He assured everyone that Binance is fully cooperating with investigators, who typically request chat histories as part of their investigations. He emphasized that anything said could potentially end up in court or on the internet.
He criticized the SEC’s use of the chat as a poster case, but expressed confidence in letting the company’s legal team handle the matter.
Furthermore, CZ encouraged any employees dissatisfied with their role at Binance to speak with their managers and consider their career options. He urged them not to waste their energy on tasks they don’t enjoy, as it would not lead to good performance. He stressed the importance of loving one’s job and being committed to Binance’s mission of “Money Freedom,” especially given the challenges that need to be overcome.
He reassured his team and users that Binance has always upheld high ethical standards and will never compromise on protecting its users.
Despite the ongoing legal challenges, CZ’s letter highlighted the company’s commitment to its users. He shared a tweet about Binance Pay’s recent partnership with Credencial Payments in Latin America, which allows users to pay with cryptocurrencies in real time. The tweet garnered a lot of support from users, demonstrating the strong community that Binance has built over the years.
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