[{"category":{"name":"Trending News","exported_url":"trending-news"},"id":"d45ec0d3-c2cc-4866-9e4d-af00b0a56742","updated_at":"2023-06-09T08:03:18.852854+00:00","account":{"firstName":"Akash","lastName":"Kashyap"},"description":"According to lawyers representing the exchange, Binance, they allege that Gary Gensler, who would later become the head of the Securities and Exchange Commission (SEC), had offered his advisory services to the company years before his appointment.","sapo":"Lawyers for Binance claim that Gary Gensler offered his advisory services to the exchange before becoming the head of the SEC.","title":"Binance Lawyers Claim SEC Chair Gensler Offered to Serve as Advisor in 2019","content":"

Lawyers representing Binance and its founder Changpeng Zhao allege that Gary Gensler, the Chair of the United States Securities and Exchange Commission, made an offer to serve as an adviser to Binance in the past.

According to a CNBC report on June 7, attorneys from Gibson & Dunn and Latham & Watkins filed documents with the SEC, alleging that in March 2019, Gensler offered to serve as an adviser to the exchange.

Contrary to the recent allegations, a previous report from The Wall Street Journal in March revealed that Binance had initiated contact with Gensler in 2018 regarding the adviser position, suggesting a different sequence of events.

Based on information from the WSJ, which referenced messages and documents spanning from 2018 to 2020, Ella Zhang, the former head of Binance's venture investing arm, and Harry Zhou, co-founder of Koi Trading (a firm invested in by Binance), met with Gensler in October 2018 to extend an advisory role offer. However, Gensler eventually declined the offer.

Furthermore, according to the report, several private companies approached Gensler to seek his advisory services during his tenure as a professor at MIT. However, Gensler turned down all of these offers.

In February 2021, President Joe Biden nominated Gensler to assume the role of Chair of the SEC, and he officially took office on April 17, 2021, following his confirmation.

Before joining the SEC, Gensler held the position of a professor of the practice of global economics and management at the MIT Sloan School of Management. Additionally, he served as the chair of the Maryland Financial Consumer Protection Commission from 2017 to 2019.

On June 5, the SEC filed a lawsuit against Binance, accusing the crypto exchange of operating unlawfully in the United States and failing to register as a securities exchange. The regulatory body brought forward a total of 13 charges against Binance, which encompassed allegations of conducting unregistered sales and offers of BNB, Binance USD tokens, and its staking program.

Binance conveyed a message through its Chinese social media channels on June 7, asserting that it possessed distinct qualities setting it apart from other cryptocurrency exchanges. This communication occurred in the midst of increased regulatory scrutiny and actions directed towards Binance.

Binance made a statement emphasizing its transparency by highlighting the visibility of its wallet addresses and denying any mishandling of consumers' funds. Moreover, Binance asserted that it had not made significant contributions to political candidates or engaged in substantial sponsorships with entertainment and media organizations, seemingly drawing a comparison to the practices associated with the now-defunct crypto exchange FTX.

Zhao, on Twitter, ignited a debate on the same day by highlighting that the SEC had not sued FTX, despite SEC Chair Gensler mentioning in an interview that there were numerous "parallels'' between Binance and FTX. This observation raised discussions and further scrutiny regarding the differential treatment between the two companies by the regulatory authority.

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","tags":[{"tag":{"tag":"Binance","id_tag":"binance"}},{"tag":{"tag":"SEC","id_tag":"sec"}}],"image":{"fileName":"binance-lawyers-claim-sec-chair-gensler-offered-to-serve-as-advisor-in-2019.png"}}]

Binance Lawyers Claim SEC Chair Gensler Offered to Serve as Advisor in 2019

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