The largest cryptocurrency company in the world, Binance US, has tapped into a powerful legal team as it faces off against the U.S. Securities and Exchange Commission (SEC). Among the high-profile names added to their defense is George Canellos, a former co-director of the SEC’s Division of Enforcement, who is now leading the charge for Binance US.
The SEC has accused Binance, its owner Changpeng ‘CZ’ Zhao, and Binance US, a separate entity catering specifically to American citizens, of breaking securities laws and “enriching themselves by billions of U.S. dollars while placing investors’ assets at significant risk.” The regulator further alleged that Zhao secretly controlled the Binance US platform’s operations from behind the scenes.
Canellos, who brings with him a wealth of experience, including four and a half years working for the SEC, has been described by John Reed Stark, former head of the SEC’s Office of Internet Enforcement, as a “uniquely qualified criminal defense all-star lawyer.” Adam Fee, a former federal prosecutor, and Andrew M. Leblanc, a bankruptcy expert, join Canellos on Binance US’ legal team.
Facing 13 serious charges, the allegations levied against Binance include operating unregistered exchanges, broker-dealers and clearing agencies; misrepresenting trading controls and oversight on the Binance.US platform; and unregistered offer and sale of securities. These charges are severe enough that the SEC has requested a judge to freeze assets held by Binance US.
The SEC’s crackdown on the crypto industry is a significant point of discussion within the community, especially given the series of high-profile targets they have pursued. Following the collapse of digital asset exchange FTX last year, the SEC has directed its attention towards other major American crypto brands, such as Coinbase and Kraken.
On the one hand, the scrutiny and action by regulators are essential in ensuring compliance and safeguarding the interests of investors. However, critics worry that excessive regulation could hinder innovation and growth in the rapidly evolving crypto space.
As the legal battle between Binance US and the SEC unfolds, it remains to be seen what impact this case will have on the future of cryptocurrency markets and regulation. For now, the main tension lies in striking the right balance between securing the interests of investors and fostering an environment that supports the growth of the blockchain and crypto industries.
Source: Decrypt
