Binance alleges that United States Securities and Exchange Commission (SEC) Chair Gary Gensler expressed interest in serving in an advisory role in 2019. Gensler has not commented on this information yet.
Crypto exchange Binance, in a startling new update to the discussions surrounding its lawsuit, stated that current United States Securities and Exchange Commission (SEC) Chair Gary Gensler expressed interest in an advisory role in 2019.
Binance Alleges SEC Chair Gary Genser Showed Advisor Interest
There has been quite a lot of back and forth between the two parties in the lawsuit. Binance’s newest salvo is that Gensler sought to become an advisor for Binance in 2019 when he was teaching at the Massachusetts Institute of Technology. The exchange alleges he expressed interest in the position, and the filing even claims that Gensler met Binance CEO Changpeng Zhao for a meeting over lunch.
Meanwhile, the Wall Street Journal has reported that Binance “set out on a plan to neutralize U.S. authorities, according to messages and documents from 2018 to 2020.” The publication reviewed these textual documents and interviewed former employees.
Explore our explainer to learn the significance of the Howey Test in the SEC’s lawsuits against Binance, Coinbase, and other crypto entities!
The SEC also believes that Binance and Binance.US redirected over $12 billion in customer assets to entities controlled by Binance founder and owner Changpeng “CZ” Zhao between 2019 and 2021. This allegation was presented in supporting evidence that was used to temporarily freeze the assets of Binance.US.
Gensler Once Taught About Blockchain Tech
Gensler was something of a positive figure in the crypto industry, especially during his teaching period at MIT in 2019. In testimony during that period, Gensler said,
“I do not advise any financial, technology, blockchain or other companies, nor do I own any cryptocurrencies.”
Interestingly, he also called the project Algorand a great technology in 2019 and was teaching a blockchain tech course at MIT.
However, he has cracked down on crypto since he was appointed SEC Chair by President Biden in 2021. As such, the crypto community is keen to remind him of his actions and statements in the past.
Binance Outflows Marginal
The SEC’s claim that Binance deceived regulators is not the first of such remarks from the SEC. However, the crypto exchange is certainly its biggest target yet, to the extent that the SEC’s decision to freeze Binance.US assets is quite the watershed moment.
Binance saw exchange outflows being quite low, relatively speaking. The exchange’s reserves declined by about 10,000 BTC, which is quite small in the overall picture. SEC Chair Gary Gensler’s crusade against crypto notwithstanding, the market seems largely unperturbed.
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