Binance.US Hires Former SEC Co-Director To Fight Illegal Securities Accusations

Key Points:

• The firm has hired George Canellos, a former co-director of the SEC’s enforcement division, and three other attorneys from Milbank LLP to defend against the allegations.
• Binance.US’s banking and payment partners have signaled an intent to pause support for its dollar channels on the platform as early as June 13.

Binance.US hires George Canellos, a former co-director of the SEC’s enforcement division, to defend against SEC’s allegations of securities violations.

Binance.US, the global Binance exchange, and Changpeng Zhao are being sued by the SEC for securities violations. The suit filed on June 5 alleged “blatant disregard” for US securities laws, including mishandling customer funds and misleading regulators and investors. The agency then filed an emergency action application to freeze Binance.US’s assets to protect customer funds. Binance has disputed these allegations.

In response to the suit, Binance has hired four lawyers from Milbank LLP, including George Canellos, a former co-director of the SEC’s enforcement division. Canellos previously supervised approximately 1,300 attorneys at the SEC on investigations that included insider trading actions against Raj Rajaratnam and hedge fund managers associated with S.A.C. Capital. Three other attorneys from Milbank are also joining Binance.US’s defense team.

The former head of SEC’s Office of Internet Enforcement, John Reed Stark, highlighted the unique skill set of George Canellos, a lawyer hired by Binance.US for its legal defense against the SEC. Canellos has experience serving as both an SEC and DOJ prosecutor, making him a valuable asset to the team.

Binance.US has announced that its banking and payment partners have signaled an intent to pause support for its dollar channels on the platform as early as June 13. This means that it will not be able to process deposits and withdrawals in dollars on the US-focused platform, instead shifting to an all-crypto exchange.

The situation between Binance.US and the SEC is still developing, and it remains to be seen what the outcome of this legal battle will be. However, it is clear that Binance.US is taking this matter seriously and is working to mount a strong defense against the allegations.

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