Binance CEO Changpeng ‘CZ’ Zhao has sent an internal memo to employees, advising them to exercise caution regarding their private conversations, as these discussions may be admissible as evidence in a legal setting. The memo, initially acquired by Wu Blockchain and subsequently verified by a Binance representative, underscores the importance of discretion in light of the potential scrutiny of chat logs by investigators.
Zhao specifically mentioned a tweet that disclosed snippets of chat logs, which were recently included as evidence by the U.S. Securities and Exchange Commission (SEC) in a lawsuit filed against the cryptocurrency exchange. Despite the fact that these remarks were privately exchanged between two individuals half a decade ago, Zhao voiced apprehension over the potential adverse consequences they could have on the company’s reputation.
During a speech on Thursday, SEC Chair Gary Gensler claimed to possess internal communications that allegedly demonstrate Binance executives knowingly violated the law. He even quoted some of these comments, prompting Zhao to describe the SEC’s use of such statements as “outrageous.” However, he suggested leaving the legal matters to the lawyers in his memo.
The cautionary message serves as a reminder to Binance employees about the potential ramifications of their private conversations, emphasizing the significance of exercising discretion and ensuring compliance with legal requirements. With the increasing scrutiny on the cryptocurrency sector by regulators, Zhao’s communication highlights the crucial nature of maintaining transparency and refraining from any actions or statements that could harm the company’s reputation or legal position.
