Binance Once Requested SEC Chairman Gensler To Serve As Its Advisor

Key Points:

• Binance, a cryptocurrency exchange, had planned to engage Gary Gensler as an advisor before he became Chairman of the United States Securities and Exchange Commission (SEC).
• An SEC employee stated in a recent Voyager Digital bankruptcy court that Binance.US is an unregistered securities exchange.

Binance sought to hire Gary Gensler as an advisor when he took head the US Securities and Exchange Commission years ago.

Binance had planned to invite Gary Gensler to be its advisor before he became Chairman of the US Securities and Exchange Commission (SEC). But, after a discussion with the exchange’s staff, Mr. Gensler refused the offer to serve as an advisor for this cryptocurrency exchange. The current SEC Chairman was a professor at the Massachusetts Institute of Technology at the time (MIT). Gary Gensler spoke with Ella Zhang, a former Binance Investment Director, and Harry Zhou, an employee of trading firm, in October 2018. Although Mr. Gensler refused the offer to be a consultant, he was nevertheless quite helpful in sharing his licensing knowledge, according to Zhou at the time.

This is not the first time Binance has attempted to reach an agreement with the US authorities. Former Senator Max Baucus of Montana has been invited to serve as Policy Advisor and Liaison for the exchange. In September 2022, the world’s largest crypto exchange, which had experienced several legal stumbling blocks, decided to organize a worldwide advisory council, bringing together many famous former government leaders.

Furthermore, the partnership between Binance and Binance.US, the exchange’s American affiliate, has gained a lot of press attention. The platform has attempted to mislead the regulator by claiming that its US-based platform is wholly distinct from its worldwide activities. The succession of internal messages, on the other hand, suggests that the two companies are considerably more intertwined. This arrangement also irritates Chinese officials, particularly the SEC.

An SEC official stated during a recent Voyager Digital bankruptcy hearing that “Binance.US is an unlicensed securities exchange.” Three Senators went on to accuse this exchange of being a “hotspot for illegal financial activities by enabling over $10 billion in filthy money and covering up sanctions evaders” last week.

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