SEC Chair Gary Gensler Derided for Shock Binance Ties

SEC Chair Gary Gensler Derided for Shock Binance Ties

Time Stamp: June 8, 2023 12:00 PM
SEC Chair Gary Gensler Derided for Shock Binance Ties PlatoBlockchain Data Intelligence. Vertical Search. Ai.
  • The SEC case against Binance continues to spark discussions.
  • A recent filing suggests that SEC Chair Gary Gensler once offered to work at the crypto exchange.
  • The allegations have sparked a flurry of online jabs.

Earlier this week, the United States Securities and Exchange Commission rocked the crypto industry by launching an enforcement action against Binance, the world’s largest crypto exchange.

While the case is still in its infancy, it has already raised a lot of serious talking points, including allegations against Binance for wash trading and mishandling customer funds. In the latest bout of controversy, filings have shown that Binance lawyers want SEC Chair Gary Gensler to recuse himself from the case claiming that he offered to serve as an advisor to the firm in 2019.

Stunning Twist

In a Tuesday, June 6 court filing by the SEC, an attached June 4 letter from Binance lawyers reveals a desire to remove Gensler from the case. Binance lawyers argue that the now-SEC chair had indicated an interest in working at the exchange in 2019 while he was still a professor at the Massachusetts Institute of Technology’s Sloan School of Management.

They also suggested that the SEC chair maintained communications with the firm afterward. In one instance, the attorneys stated that Gensler had lunch with Binance Chief Executive Officer Changpeng “CZ” Zhao in March 2019, where they allegedly discussed the BNB token and the prospect of establishing a U.S.-based exchange, among other things. According to Binance’s attorneys, it was understood that Gensler was willing to serve as an advisor in an informal capacity.

The recent allegations have unsurprisingly sparked a flurry of reactions online as crypto community members struggle to wrap their heads around the idea that one of the industry’s most potent critics once tried to gain the favor of the world’s largest exchange.

Several community members were quick to poke fun at the SEC chair. For instance, popular trader Christopher Inks sarcastically likened the SEC case against Binance to a personal vendetta.

However, not all took the claims lightly, as some cried foul, pointing to previous alleged ties between the SEC chair and disgraced FTX founder Sam Bankman-Fried (SBF).

On the Flipside

  • A previous Wall Street Journal report suggests that Binance approached Gensler.

Why This Matters

The allegations against Gensler raise questions of conflict of interest.

Read this to learn more about the SEC case against Binance:

Binance Sued: How SEC Lawsuit Differs from CFTC Case 

Coinbase, another exchange sued by the SEC, has expressed willingness to fight till the end:

Coinbase CEO Willing to Fight SEC in Supreme Court

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