Gensler was teaching at the Massachusetts Institute of Technology’s Sloan School of Management at the time the offer was made to become an advisor to Binance.
According to lawyers for Binance and its CEO changpeng zhao, seconds Chair Gary Gensler In 2019 it was offered to become an advisor to the parent company of Binance. Interestingly, Gensler has been taking action against the crypto industry for the past year. Binance and Other crypto companies Currently on the radar of US regulator regarding violation of securities laws. The SEC chairman has repeatedly expressed his bearish stance against crypto and crypto companies. He said in March that just because a crypto trading platform claims to be a qualified custodian doesn’t mean it is.
SEC chairman may become an advisor to Binance in 2019
News of offer to Gensler to serve as advisor to binance This came to light in the wake of recent filings against the company, which include violations of securities laws, violation of KYC regulations and more. According to documents filed with the commission on Wednesday, two law firms representing Binance, Gibson Dunn and Latham & Watkins, alleged that the SEC chairman made the offer in March 2019 in several conversations with Binance executives and Zhao. The filing says Gensler also met. The Binance CEO went to Japan for lunch later that month.
At the time Gensler was offered to become an advisor to Binance, he had yet to become a boss at the SEC. He was teaching at the Sloan School of Management of the Massachusetts Institute of Technology. After that, President Joe Biden Appointed him as the head of the commission in 2021. However, Gensler has been tough on the crypto market, targeting several companies and slamming them with lawsuits over allegedly selling unregistered securities. It has been a dramatic week for the crypto industry as the SEC filed 13 charges against Binance and Zhao. The regulator claimed that the company was not registered as an exchange and broker-dealer. It also alleged that Binance and Zhao put investors at risk in order to line their own pockets.
The Zhao-Gensler Relationship Before the SEC’s Crypto Crackdown
In addition, the lawyers said that Zhao maintained contact with Gensler after their lunch meeting in March. Furthermore, the Binance chief accepted Genlser’s request to give an interview as part of a crypto course he teaches at MIT. Later in the year, the future SEC boss shared a copy of his intention testimony with Zhao. He was scheduled to testify before the House Financial Services Committee. Testifying before the House on Facebook’s proposed but failed crypto Libra and Calibra wallet, an MIT professor said:
“I do not advise any financial, technology, blockchain or other companies, nor do I own any cryptocurrencies.”
Gensler proposed the advisory idea in 2019 after he reportedly met with Zhao, the SEC investigation and Lawsuit against Binance US and Binance debuted in 2020 and 2020 respectively.
Ibukun is a crypto/finance writer interested in delivering relevant information using non-complicated words to reach all types of audiences. Apart from writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos where she lives.
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