Binance.US, a prominent crypto exchange based in the United States, has made a strategic move to bolster its legal defense team amidst allegations of operating as an unregistered securities exchange.
The exchange has hired George Canellos, a former enforcement official for the U.S. Securities and Exchange Commission (SEC), along with three other lawyers from the international law firm Milbank LLP reportedly.
As per BloomBerg’s report, Canellos, who served in various leadership roles at the SEC for over four years, brings a wealth of experience and expertise to Binance.US’s legal team.Â
His addition indicates that the exchange is gearing up for potential criminal prosecution and is determined to secure the best defense attorneys available.
The hiring comes after a lawsuit filed by the SEC against Binance.US, accusing it of failing to register as an exchange, broker, and clearing agency, as stated by former SEC internet enforcement chief John Reed Stark.
Similar allegations were made against global exchanges Binance and Coinbase in subsequent filings. The SEC even sought a temporary restraining order to freeze the assets of Binance.US.
Responding to the SEC’s motion to freeze assets, Binance.US filed a response asserting that the proposed remedies by the SEC would effectively destroy their business. The exchange labeled the SEC’s actions as draconian and unduly burdensome.
In response to the SEC’s actions, Binance.US recently announced the suspension of U.S. dollar deposits and potential pauses on fiat withdrawals, citing the SEC’s aggressive and intimidating tactics as the reason behind this decision.
The SEC’s approach to crypto enforcement has faced criticism from lawmakers and industry leaders.
Representative Warren Davidson, on June 12, proposed a bill aimed at restructuring the commission and called for the firing of SEC chair Gary Gensler, highlighting concerns about the commission’s heavy-handed tactics.
Also Read: U.S Senator Revives Crypto Regulation Push Amid SEC Lawsuits
As the legal battle unfolds, Binance.US is proactively fortifying its defense team, ready to confront the allegations and fight for its future in the crypto landscape.
