FTC v. Binance: Meet the Defendants

III. PARTIES

B. Defendants

14. Changpeng Zhao is the Chief Executive Officer (“CEO”) of Binance. Zhao launched Binance in 2017 from Shanghai, China and has ultimately controlled all of Binance’s business activities at all times. Zhao is a Canadian citizen who, based on recent media reports, currently resides in Dubai, United Arab Emirates.

Zhao has directly or indirectly owned the scores of entities that collectively operate the Binance platform.

In addition to the entities that operate the Binance platform, Zhao is the direct or indirect owner of entities that have engaged in proprietary trading activity on the Binance platform, including Merit Peak Limited and Sigma Chain AG, and Zhao is also the direct or indirect owner of approximately 300 separate Binance accounts that have engaged in proprietary trading activity on the Binance trading platform.

Zhao has never been registered with the Commission in any capacity.

15. Binance Holdings Limited (“Binance Holdings”) is incorporated in the Cayman Islands and directly or indirectly owned by Zhao. Binance Holdings has held intellectual property for Binance, including trademarks and domain names, and has employed at least certain individuals who perform work for or on behalf of the Binance platform.

Binance Holdings has never been registered with the Commission in any capacity.

16. Binance Holdings (IE) Limited (“Binance IE”) is incorporated in Ireland and directly or indirectly owned by Zhao. Binance IE is a holding company that has directly or indirectly owned at least 24 corporate entities that have acted as Binance’s digital asset and virtual asset service providers in a variety of jurisdictions and held Binance’s non-U.S. regulatory licenses.

Binance IE has never been registered with the Commission in any capacity.

17. Binance (Services) Holdings Limited (“Binance Services”) is incorporated in Ireland and directly or indirectly owned by Zhao. Binance Services is a holding company that has directly or indirectly owned at least 43 different corporate entities, including companies that conduct technology and operations services for Binance, hold the intellectual property related to Binance’s matching engines and financial products, and enter into contracts with vendors, as well as a company called Ality Technologies DE LLC that functions as Binance’s “U.S. Tech/Ops Hub.”

Binance Services owns Binance Holdings. Binance Services has never been registered with the Commission in any capacity.

18. Samuel Lim was hired in April 2018 as Binance’s first Chief Compliance Officer (“CCO”) and remained in that role until at least January 2022. On information and belief, Lim resides in Singapore. Binance Holdings refused to provide Lim’s residential address in response to a CFTC investigative subpoena.

While acting as CCO, Lim advised, directed, and assisted Binance employees and customers in circumventing compliance controls intended to detect and prevent violations of law. Lim also made representations on behalf of Binance regarding the platform’s compliance program and controls to regulators located in the United States.

On information and belief, Binance placed Lim on paid, administrative leave in or around May 2022 but continues to employ Lim. Lim has never been registered with the Commission in any capacity.