In a shocking twist to the ongoing crackdown on crypto firms, it emerged that SEC chief Gary Gensler offered his services as an advisor to Binance’s parent company in 2019. Lawyers representing Binance and its founder Changpeng Zhao (CZ) have filed documents claiming that Gensler has had multiple conversations with Binance executives and Zhao. He expresses interest in providing advice on cryptocurrency exchanges in these talks.
The alleged date went on a lunch meeting in Japan. This revelation raises questions about Gensler’s past relationship with Binance. Especially considering his current aggressive stance towards the cryptocurrency industry.
All of this leads to the question – is all crypto drama just another case of “If you can’t join Em, Em winsHere’s what we know so far…
- SEC Chairman Gary Gensler allegedly provided his advisory services to Binance’s parent company in 2019.
- Questions are being raised about Gensler’s relationship with Binance amid its current aggressive stance on cryptocurrency.
- Binance’s legal team is seeking to remove Gensler from the case, citing a potential conflict of interest.
Gary Gensler fights for his misplaced pride
At the time of these discussions, Gensler was a professor at the prestigious MIT Sloan School of Management. His appointment as chairman of the Securities and Exchange Commission in 2021 by President Biden marked a significant shift in his approach. He has embarked on a relentless hunt for crypto companies, accusing them of selling unregistered securities and filing lawsuits against them.
The crypto community around the world is taking a stand against the SEC crackdown. The latest “Stand With Crypto” campaign rallied the web3 world in pursuit of a decentralized financial system.
Interestingly, before the SEC campaign on Binance, Gensler made attempts to establish a closer relationship with the company. Inside information from Binance internal messages and a source close to Gensler indicates that it was Binance who initially contacted him. This new revelation adds a touch of irony to the current situation
The plot thickens
According to the latest filings from Binance’s legal team at Gibson Dunn and Latham & Watkins, Zhao maintained contact with Gensler even after their meeting in March. In fact, at Gensler’s request, Zhao participated in an interview with him as part of a cryptocurrency course that Gensler was teaching at MIT. Chow seems to understand that Gensler is acting as an unofficial advisor, further blurring the lines of their relationship.
Curiously, in 2019, Gensler sent Zhao a copy of his intended testimony before he appeared before the House Financial Services Committee, where he was set to discuss Facebook’s controversial cryptocurrency Libra and its associated Calibra wallet. In his prepared testimony, Gensler explicitly stated, “I do not recommend any financial, technology, blockchain or other companies, nor do I own any cryptocurrency. ” This statement is surprising, given his alleged involvement with Binance at the time.
Will the latest finds ever help Binance?
Binance’s legal team argues that Gary Gensler should be excluded from any involvement in their case due to his past relationship and interactions with CZ. They believe Gensler’s connection to Zhao makes him a potential witness with important information about the company. Binance’s lawyer specifically sought confirmation from the SEC staff regarding Gensler’s stepping down. But they also claim that their application has not yet been recognized.
By calling for Gensler to be removed from the case, the Binance legal team aims to ensure a fair and unbiased assessment of their situation. This highlights the need for transparency and proper handling of potential conflicts of interest within regulatory procedures.
On the other hand, the SEC maintains that Gensler fully complies with his ethical obligations and any disqualification requirements. It is important to note that SEC investigations into Binance.US and Binance started in 2020 and 2021, respectively. This was after Gensler’s alleged interactions with Chow. However, this unexpected revelation adds a layer of complexity to the ongoing battle between the SEC and Binance.
With the cryptocurrency industry still facing regulatory scrutiny, the story of Gensler’s former association with Binance serves as a reminder of the complex web of relationships and interests that often exist behind the scenes. Only time will tell how this revelation will affect the ongoing legal proceedings and the broader crypto landscape. NFTEvening covers the story as it continues