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Binance Lawyers Claim SEC Chair’s Alleged Offer Raises Questions Amidst Lawsuit
Binance lawyers have accused Gary Gensler, the Chair of the SEC, of offering to be an informal advisor to the company. These allegations were made in a letter sent to the SEC just before the agency filed a lawsuit against Binance.
The lawyers claim that Gensler had conversations with Binance employees and the CEO before becoming SEC Chair, and they allege that during a meeting in Japan in 2019, Gensler and the CEO discussed Binance’s token and a potential U.S.-based platform. The lawyers argue that Gensler’s previous involvement with Binance should have led to his recusal from the case. The SEC has not yet commented on the allegations.
The allegations were included in documents released by the SEC as part of its lawsuit against Binance. The lawsuit accuses Binance of deceptive practices, conflicts of interest, lack of disclosure, and evasion of the law.
This lawsuit comes after a previous legal action filed by the Commodities and Futures Trading Commission in March, which made similar allegations against Binance regarding its attempts to bypass U.S. securities regulations. Additionally, the SEC recently filed a lawsuit against Coinbase, the largest cryptocurrency exchange in the United States, accusing it of operating as an unregistered broker, national securities exchange, and clearing agency.
SEC Chair Gensler's Cryptic Connection to Binance Lawyers Exposed!
In a scandal that will leave you speechless, #Binance lawyers claimed regarding #SEC Chair Gary Gensler's alleged offer to advise a major #Crypto company back in 2019.https://t.co/PB2MrVEb4u pic.twitter.com/UNxVCGiaco
— Coinpedia – Fintech News (@CoinpediaNews) June 8, 2023
These lawsuits against Binance and Coinbase indicate increasing regulatory enforcement by the U.S. government in the cryptocurrency industry. Since the collapse of FTX in November, the SEC has targeted other major players in the industry. The allegations made by Binance lawyers raise concerns about conflicts of interest and recusal obligations for Gensler.
Binance lawyers have alleged that SEC Chair Gary Gensler offered to advise the company. The allegations have raised questions about potential conflicts of interest, while the lawsuits against Binance and Coinbase highlight the growing regulatory scrutiny in the cryptocurrency sector.
