The largest cryptocurrency exchange in the world – Binance – has reportedly recruited M. Kendall Day – a former prosecutor of the US Department of Justice. His primary duty was to represent the company in legal battles against the United States Securities and Exchange Commission (SEC).
The agency went to war with Binance earlier this month, accusing it of violating several rules. According to one of the allegations, the exchange offers services with unregistered securities, such as the platform’s native token BNB and the stablecoin BUSD.
Prepare for War
as reported in a recent Bloomberg, Sun appears in the SEC case as Binance’s lawyer. His extensive experience includes 15 years at the Department of Justice, where he served as a white-collar prosecutor and later rose to Acting Deputy Assistant Attorney General (DAAG).
Day is in charge of the Money Laundering and Asset Recovery Section and has responsibility for about 200 prosecutors and other experts. He has also handled high-profile cases and investigations related to allegations of corporate and financial misconduct.
Interestingly, now he has to stand in the opposite corner. The SEC filed a lawsuit at the beginning of the month, accusing Binance, CEO Changpeng Zhao (CZ), and Binance US of violating several rules.
For one, it maintains that the company and its American subsidiary operate as “unregistered national securities exchanges, broker-dealers, and clearing agencies.”
Binance also provides access to tokens that are considered unregistered securities by the Commission, including BNB and BUSD.
“Through thirteen indictments, we allege that Zhao and Binance entities engaged in a vast web of fraud, conflicts of interest, lack of disclosure, and calculated evasion of the law,” it said. SEC Chair Gary Gensler.
For his part, Zhao remained undaunted by the threat, posting his signature number “4” on Twitter. The latter has become a sign for followers to ignore “fake news” and negative information that is spread only to harm the company.
Coinbase Another Target
Besides Binance, the SEC also filed a lawsuit against US-based crypto exchange Coinbase. Similar to the aforementioned case, the watchdog accused the platform led by Brian Armstrong of offering trading services with unlicensed securities such as the famous digital assets SOL, MATIC, ADA, FIL, SAND, AXS, and others.
CEO Armstrong SAYS Coinbase will be “proud” to represent the sector in the legal battle with the SEC, adding that it will “finally get clarity on crypto rules.”
“We will get the job done. In the meantime, we will all continue to grow and build as an industry. America will get it right in the end,” he concluded.
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