Adam Moskowitz, an attorney who has led legal efforts in various cryptocurrency-related cases, filed a motion to request the testimony of former Binance CEO Changpeng “CZ” Zhao.
In a filing on December 8 to the U.S. Southern District of Florida, Miami Division, Moskowitz emphasized the criticality of Zhao's testimony to the involved parties' claims and defenses. The motion is part of a $1 billion lawsuit against Zhao, Binance, and cryptocurrency influencers, which a court previously ordered to stay in August.
Moskowitz, representing several clients in lawsuits against prominent crypto entities, handled cases related to the FTX crash and a lawsuit alleging investors were misled by football star Cristiano Ronaldo's endorsement of Binance’s non-fungible tokens (NFTs), resulting in losses.
Explaining the motion, Moskowitz stated, “Usually, for a named defendant like CZ, we would simply issue a notice for testimony. However, due to ongoing proceedings, we've agreed to await a judge's decision regarding Binance’s request for us to file a class action lawsuit with the AAA Arbitration Association. Zhao’s testimony will be vital regardless of the final outcome.”
The attorney cited a Washington judge's order for Zhao to remain in the U.S. until his sentencing in February 2024. In November, U.S. authorities reached a $4.3 billion settlement with Binance, leading to Zhao's resignation as CEO and a guilty plea to a felony charge.
Moskowitz expressed uncertainty regarding Zhao’s potential prison sentence and noted that his guilty plea in federal charges about Binance's security measures during his tenure could support some claims in the civil suit. The case accuses Binance of promoting unregistered securities, despite the SEC not settling with Zhao, Binance, or the government.
Regarding the ongoing SEC case, Moskowitz commented, “The SEC continues its pursuit against CZ and Binance, alleging the BNB token as an unregistered security, potentially rendering its purported value of $4 billion to zero.”
The motion's outcome remains uncertain as Zhao is no longer Binance’s CEO or part of its leadership.
