Amid a lawsuit and efforts to unfreeze its assets, Binance.US has made a strategic move by hiring a former enforcement official from the U.S. Securities and Exchange Commission (SEC) to bolster its legal defense.
George Canellos, a former SEC enforcement co-director who is currently associated with the international law firm Milbank LLP, has joined the legal team. He is accompanied by three other lawyers. This development highlights Binance.US’s determination to combat allegations of operating as an unregistered securities exchange.
Former SEC Enforcement Official Joins Binance.US Legal Team
According to a recent Bloomberg report, Binance.US has secured the expertise of George Canellos as part of its legal defense team. He is a former SEC enforcement co-director. Canellos held various leadership positions during his over four-year tenure at the SEC. Therefore, he brings valuable insights and experience to the table.
This strategic move signifies Binance.US’s intent to prepare for potential criminal prosecution and employ the services of top-notch defense attorneys.
Further, according to a statement on Twitter by former SEC internet enforcement chief John Reed Stark, Binance is evidently making active preparations for potential criminal prosecution. Stark highlighted the seriousness of the fraud allegations put forth by the CFTC and SEC.
Moreover, he added that it may just be the beginning of a more extensive criminal indictment. Stark further stated that if convicted or pleading guilty to Binance-related crimes, individuals could face prison time as sought by a DOJ prosecutor.
Implications of Binance Lawsuit
The lawsuit filed by the SEC against Binance.US alleges that the exchange failed to register as an exchange, broker, and clearing agency. This lawsuit echoes similar allegations made against global exchange Binance and Coinbase in subsequent filings.
Furthermore, the SEC sought a temporary restraining order to freeze the assets of Binance.US. These legal challenges pose significant hurdles for the U.S.-based exchange.
Binance.US Responds to the SEC Lawsuit
In response to the SEC’s court petition to freeze its assets, Binance.US filed a compelling statement on June 12. Further, the exchange firmly argued against the proposed remedies put forth by the SEC. They stated that they would essentially cripple the company’s operations without any exceptions.
Moreover, Binance.US emphasized that the SEC’s motion should be denied by the court, as the proposed remedies would have severe consequences for the exchange’s business.
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