Patrick

Richard

James

<p class="is-style-lead">The US SEC&#8217;s complaint against Binance has unveiled intriguing details surrounding the sudden departure of former Binance.US CEO Brian Brooks in August 2021, merely three months into his tenure.</p>



<p>The complaint references an undisclosed source who briefly oversaw Binance.US operations during the same period, coinciding with Brooks&#8217; tenure.</p>



<p>Renowned cryptocurrency lawyer James Murphy, popularly known as MetaLawMan on Twitter, shared this revelation in a tweet on June 5. The dates outlined in the complaint align precisely with Brooks&#8217; leadership at Binance.US following his appointment on May 1, 2021, succeeding former CEO Catherine Coley.</p>



<p>Allegedly, Brooks swiftly realized that he held no actual control over the company, prompting him to step down and publicly announce his resignation on August 7.</p>



<p>However, Binance&#8217;s Chief Communications Officer, Patrick Hillman, has cast doubt on Murphy&#8217;s speculations, <a href="https://twitter.com/PRHillmann/status/1665822348291743744" target="_blank" rel="noopener">suggesting</a> that they may represent the subjective perspective of a single individual and may not withstand scrutiny over time.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">This might be one person&#39;s narrative, but I have a feeling it might not hold up to the test of time 🤷🏻‍♂️</p>&mdash; Patrick Hillmann (@PRHillmann) <a href="https://twitter.com/PRHillmann/status/1665822348291743744?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 5, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<h2 class="wp-block-heading" id="mounting-legal-troubles-plague-binance">Mounting legal troubles plague Binance</h2>



<p>These revelations arrive amidst the SEC&#8217;s filing of <a href="https://crypto.news/sec-sues-binance-and-cz-for-securities-violations/">13 charges against Binance</a>, accusing the exchange of operating as an unregistered securities exchange and engaging in illicit activities within the United States.</p>



<p>The SEC asserts that Binance unlawfully solicited US customers to trade assets on unregistered platforms. Moreover, the regulator alleges that Binance&#8217;s CEO, Changpeng Zhao, and the exchange itself were directly involved in the operations of Binance.US, contrary to prior claims made by the defendants.</p>



<p>In a parallel development, the Commodity Futures Trading Commission (CFTC) has also <a href="https://crypto.news/us-cftc-takes-legal-action-against-binance-crypto-markets-fall/">sued Binance</a> for conducting business without proper registration, thereby violating the Commodity Exchange Act.</p>



<p>In the face of mounting regulatory issues, reports suggest that Binance might soon <a href="https://crypto.news/binance-appoints-former-singapore-exec-as-head-of-regional-markets/">welcome a new CEO</a>, Richard Teng, recently appointed to oversee the exchange&#8217;s regional markets outside the United States.</p>



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<iframe title="BREAKING: SEC Takes on Binance! RATTLES BITCOIN - C.Z. Responds!" width="1020" height="574" src="https://www.youtube.com/embed/nV1tjd2uAfM?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
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<h2 class="wp-block-heading" id="strong-binance-8217-s-response-to-sec-8217-s-allegations-strong"><strong>Binance&#8217;s response to SEC&#8217;s allegations</strong></h2>



<p>Binance has disappointedly responded to the SEC&#8217;s claims, expressing dissatisfaction with the agency&#8217;s decision to file an emergency complaint seeking relief against the exchange.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Our response to the SEC&#39;s complaint.<a href="https://t.co/mgXxGTKr67" target="_blank">https://t.co/mgXxGTKr67</a></p>&mdash; Binance (@binance) <a href="https://twitter.com/binance/status/1665755879742767108?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 5, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>Binance emphasizes its proactive efforts to cooperate with the SEC and reach a settlement in previous investigations. However, the exchange accuses the SEC of abandoning the cooperative approach and opting for unilateral litigation.</p>



<p>Binance alleges that the SEC&#8217;s enforcement and litigation strategy fails to consider the intricate and dynamic nature of the underlying technology.</p>



<p>While firmly acknowledging the seriousness of the SEC&#8217;s allegations, Binance vows to vigorously defend its platform, contending that they should not form the basis of an enforcement action, especially on an emergency basis.</p>



<p>Binance CEO Changpeng Zhao characterized the SEC lawsuit as an attack on the entire cryptocurrency sector.</p>



<h2 class="wp-block-heading" id="binance-vs-sec-showdown-rocks-crypto-market">Binance vs. SEC showdown rocks crypto market</h2>



<p>The impact of the latest developments surrounding Binance reverberated throughout the cryptocurrency market, resulting in significant downturns for major cryptocurrencies.&nbsp;</p>



<figure class="wp-block-image size-full is-resized"><img decoding="async" loading="lazy" src="https://crypto.news/app/uploads/2023/06/BNB_1D_graph_coinmarketcap.png" alt="SEC complaint sparks questions on former Binance.US CEO&#039;s sudden departure - 1" class="wp-image-14165866" width="842" height="579"><figcaption class="wp-element-caption">BNB/USD 24 hr price chart | Source: <a href="https://coinmarketcap.com/currencies/bnb/" target="_blank" rel="noopener">CoinMarketCap</a></figcaption></figure>



<p>Binance&#8217;s native cryptocurrency, BNB, experienced an 8% setback, while other popular altcoins, including Dogecoin, XRP, and Solana, plummeted by over 7%.</p>



<p>Data from Nansen on June 5 revealed that during one hour, traders on Binance withdrew a staggering <a href="https://crypto.news/binance-sees-net-outflows-of-69-million-in-one-hour/">$125 million</a> worth of digital assets, while the platform received only $56 million in deposits. These figures indicate a substantial net outflow of funds from the exchange within that hour. </p>



<p>As the legal battle between Binance and US regulators unfolds, the cryptocurrency industry anxiously awaits the outcome, aware of its potential implications for the broader ecosystem.</p>



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SEC complaint sparks questions on former Binance.US CEO’s sudden departure

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