Binance lawyers have accused Gary Gensler, the Chair of the SEC, of offering to be informally advise the company. These claims surfaced in a letter sent to the SEC before the agency filed a lawsuit against Binance.
The lawyers allege that Gensler had discussions with Binance employees and the CEO before taking his role as SEC Chair. They claim that during a meeting in Japan in 2019, discussions between Gensler and the CEO took place regarding Binance’s token and the possibility of a U.S.-based platform. The lawyers argue that Gensler’s previous ties to Binance should have led to his recusal from the case. The SEC has yet to respond to these allegations.
The allegations were disclosed 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 transparency, and circumvention of the law.
This legal action follows an earlier lawsuit filed by the Commodities and Futures Trading Commission in March, which made similar accusations against Binance for trying to circumvent U.S. securities regulations. Additionally, the SEC recently sued Coinbase, the largest cryptocurrency exchange in the U.S., for allegedly operating as an unregistered broker, national securities exchange, and clearing agency.
These legal actions against Binance and Coinbase underscore the heightened regulatory oversight by the U.S. government in the cryptocurrency sector. Since the FTX incident in November, the SEC has shifted focus to other key players in the industry. The claims by Binance lawyers bring up concerns about conflicts of interest and recusal obligations for Gensler.
Binance lawyers have asserted that SEC Chair Gary Gensler supposedly made an offer to advise the company. These claims have sparked inquiries into potential conflicts of interest, while the lawsuits against Binance and Coinbase underline the escalating regulatory attention in the cryptocurrency field.
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