The recent dispute between the Securities and Exchange Commission (SEC) and Binance appears to be driven by resentment on the part of Gary Gensler, who allegedly offered his services to Changpeng Zhao’s platform in 2019, which then turned down the offer.
SEC and Binance, arm wrestling against a backdrop of resentment?
Binance’s defense attorneys revealed via a court document that Gary Genslerthe chairman of the Securities and Exchange Commission (SEC), had expressed interest in an advisory role for the cryptocurrency exchange in 2019.
At that time, Gary Gensler was then a professor at the Massachusetts Institute of Technology (MIT), where he mainly taught economic principles. He would also have been approached by different companies during his years of teaching, and would have declined each of them.
And even Binance reportedly offered Mr. Gensler to join its ranks in 2018, a year earlier before he changed his mind. More specifically, according to information from the Wall Street Journal published last March, the current chairman of the SEC would have even been accommodating with the first cryptocurrency exchange platform in the world :
“Ella Zhang, who then headed the venture capital investment arm of Binance, and Harry Zhou met Mr. Gensler in October 2018, according to their exchanges. Mr. Zhou wrote, “I observe that, although Gensler declined to be an adviser, he was generous in sharing licensing strategies.”
So, would Gary Gensler have changed his mind between this first meeting and his request to Binance in 2019? Be that as it may, since his dubbing as SEC Chairman in April 2021 by Joe Biden, the interested party seems to have things to settle with the Changpeng Zhao platform.
Although the CEO of Binance did not publicly react to this news, he did however point out via a tweet share that the SEC had simply failed to protect investors through many recent situationsespecially during the collapse of Voyager Digital, Celsius, BlockFi, Grayscale or, of course, FTX.
Reminder, Gensler’s SEC:
FAILED to catch FTX ($8bn fraud & bankruptcy)
FAILED to protect Grayscale investors ($8bn impairment)
FAILED to protect Voyager, Genesis, BlockFi borrowers ($4bn+ bankruptcies)
It’s not that he’s mean, it’s that Gensler is an incompetent, crooked cop.
— Ryan Selkis 🪳 (@twobitidiot) June 7, 2023
Binance is currently awash in SEC accusationswho accuses him in particular of having mixed the funds of his clients with his own, or of having operated illegally on American soil, among other things.
The CZ exchange had already seen a blow from the CFTC last April, which had led to a relative loss of market share in the crypto exchange community.
👉 On the same subject – France: Binance Pay and Lyzi make cryptocurrency purchases possible at 440 merchants
Buy crypto on eToro
Sources: Wall Street Journal, CNBC
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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