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Cryptocurrency exchange Binance US is gearing up for a legal standoff against the U.S. Securities and Exchange Commission (SEC). Enlisting the services of an ex-SEC lawyer, the crypto behemoth seeks to tackle charges levied by the federal agency, laying down its battle lines in a court document released today.
The SEC has set its sights on Binance US, a distinct entity operating under the same brand as its global counterpart but catering specifically to American clientele. The federal watchdog has accused the crypto platform, its global counterpart Binance, and its top executive, Changpeng "CZ" Zhao, of significant regulatory breaches.
George Canellos, a former co-director of the SEC's Division of Enforcement, has joined Binance US's legal team, bolstering the defense. Canellos, currently leading the litigation and arbitration group at Milbank in New York City, is renowned for his instrumental role in some of the SEC's most prominent cases, including that against Raj Rajaratnam, a notorious insider trading culprit.
At the heart of the lawsuit, the SEC alleges that Zhao and Binance exerted clandestine influence over Binance US's operations, flagrantly breaching securities laws, endangering investor assets, and amassing billions in the process.
Joining Canellos on the front lines of defense are Adam Fee, a former federal prosecutor, and Andrew M. Leblanc, a seasoned bankruptcy expert. Their collective expertise is set to combat the SEC's serious allegations, which include the operation of unregistered exchanges, broker-dealers, and clearing agencies; misrepresentation of trading controls on the Binance.US platform; and illegal securities sales.
Highlighting the gravity of the situation, the SEC has called for the court to freeze Binance US's assets. This comes as part of the federal watchdog's recent and relentless pursuit of American crypto firms since the demise of FTX, another major digital asset exchange, the previous year. Names like Coinbase and Kraken have also found themselves under the SEC's scrutiny.
With a formidable legal team in place, Binance US prepares to lock horns with the SEC, embarking on a landmark legal battle that may shape the future of the crypto industry.
