Binance.US, in an effort to fight charges from the US Securities and Exchange Commission (SEC), has hired four experienced lawyers, including George Canellos, former co-director of SEC’s enforcement division. Canellos’s notable experience includes serving as the SEC acting director and deputy director in the enforcement division where he established enforcement priorities and policies. From July 2009 until May 2012, he was a director of the SEC’s New York Regional Office, responsible for enforcement investigations, actions, and compliance inspections. Currently, he is a partner at Milbank LLP.
John Reed Stark, former chief of the SEC’s enforcement division, praised Canellos, calling him a “uniquely qualified criminal defense all-star lawyer.” Stark commented on Canellos’s combination of skills, having served as both an SEC and DOJ prosecutor, likening him to Liam Neeson and Perry Mason.
Other seasoned attorneys from Milbank who have joined Binance.US’s defense team, as reported by Bloomberg, include Adam Fee, Matthew Laroche, and Andrew LeBlanc.
The SEC filed a lawsuit against Binance last week, accusing the company of having a “blatant disregard of the federal securities laws” and leveled 13 charges against them, including operating an unregistered exchange. The SEC alleged that Zhao and Binance were aware of their violation of various US laws. In a statement, the SEC quoted Binance’s CCO admitting to another Binance compliance officer in December 2018 that the platform was operating as an unlicensed securities exchange in the USA.
Following the lawsuit, Binance.US suspended US dollar deposits and requested that users withdraw funds by June 13. Binance also expressed concern over what it calls the SEC’s “extremely aggressive and intimidating tactics” as part of an ideological campaign against the American digital asset industry. Binance claimed these tactics have affected their business partners and created challenges for the banks they work with.
In efforts to protect their customers and platform, Binance announced the suspension of USD deposits and informed customers about their banking partners preparing to pause fiat (USD) withdrawal channels, effective as early as June 13, 2023. The company urged its customers to take appropriate action regarding their USD holdings.
Binance.US’s recent legal team expansion may help the company effectively address the SEC’s allegations. However, the outcome of this case remains to be seen, as it could potentially impact the overall regulation of cryptocurrencies and exchanges in the United States.
Source: Cryptonews
