Yesterday the 7th of June 2023, in response to the latest SEC crackdown, attorneys from Gibson Dunn and Latham & Watkins, two of Binance’s law firms, made a court filing.

The filed lawsuit contained a claim that SEC Chair Gary Gensler applied to Binance’s parent company for the role of an advisor in 2019.

As stated in the filing, Gary Gensler met the CEO of Binance Changpeng Zhao in Japan in March to discuss the proposal.

At the time, Gensler was a teacher at Massachusetts Institute of Technology’s Sloan School of Management. And in that period, he was renowned for telling students in 2018 that majority of the crypto market are not securities. According to Gensler “Three-quarters of the market is non-securities. It is just a commodity, a cash crypto.”

And now five years later, in a complete turn of events he has labeled most of the crypto market as securities.

According to the lawyers from Binance, Gensler was “trying to cozy up to the company” before unleashing his attack on the company and its chief executive.

It was reported by CNBC that throughout 2019 Gensler and CZ were in contact. In 2021 he became chair of the SEC, starting his suppression on the industry the following year.

This year Gensler has not hidden his animosity towards the industry, his utmost goal is to eliminate crypto in America. Earlier this week, he was spotted saying said that the United States does not need digital assets because it has the dollar.

The SEC has ordered the freezing of all the assets of Binance.US to prevent flights offshore. Industry experts acknowledge the irony following the statement of the SEC stating that it is trying to “protect investors,” when in reality the SEC has caused them to lose millions.

CZ was summoned by a U.S. court this week, however, he does not have to appear in person because he is not a citizen of the U.S.

Price of BNB Dumps

BNB prices have lost around 16% since the enforcement action earlier this week. It fell to $263 at the time of writing dropping 7% on the day.

However, when compared to many other cryptocurrencies BNB is faring much better having dropped just 62% from its peak price. Ripple’s XRP is down 85% from its all-time high as the firm is also in a skirmish with the SEC.

Featured Image Source: Coincu News

Leave a Reply

Your email address will not be published. Required fields are marked *

Captcha Plus loading...