On Monday, the U.S. Securities and Exchange Commission (SEC) filed a legal complaint against Binance and its CEO, Changpeng Zhao, accusing Binance of operating an exchange without proper registration and redirecting investors’ funds to a trading entity controlled by Zhao.
The lawsuit alleges that Binance aimed to circumvent regulatory supervision designed to protect investors and maintain market integrity.
Talking about the lawsuit, former US SEC Enforcement Division Chief John Reed Stark likened the case between the US Securities and Exchange Commission (SEC) and Binance to a reminiscent clash between Muhammad Ali and Joe Frazier.
The SEC/Binance Case is Ali-Frazier Redux.
The SEC trial team battling Binance is top-notch but Binance has hired some of the best SEC enforcement defense attorneys on the planet.
The SEC is represented in-house by Matthew Scarlato, (former US DOJ civil prosecutor), Jennifer…
— John Reed Stark (@JohnReedStark) June 5, 2023
Former SEC chief shares insights on Binance lawsuit outcome
According to Stark, the US SEC trial team is highly skilled, while Binance has retained the services of accomplished SEC enforcement defense attorneys to contest the SEC’s claims. On one side, the US SEC has enlisted the representation of Matthew Scarlato, a former US DOJ civil prosecutor, Jennifer Farer, a former US DOJ criminal fraud prosecutor, and J. Emmett Murphy, a former litigation partner at King & Spalding.
On the other hand, Binance has made preparations for the SEC’s legal action and has hired several lawyers, including former SEC officials. Richard Grime, a former Assistant Director of the US SEC Enforcement Division, is representing Binance through Gibson Dunn & Crutcher LLP. Binance CEO Changpeng Zhao, also known as “CZ,” is being represented by Douglas Yatter, Benjamin Naftalis, William R. Baker, and Eric Volkman from Latham & Watkins LLP. Notably, Baker is a former Associate Director of the US SEC Enforcement Division.
Additionally, BAM Trading, the operator of Binance.US, has retained Bill McLucas, a highly regarded former US SEC Director of Enforcement, for legal counsel.
The recent lawsuit by the SEC is another evident fact that the US is trying to bring down the cryptocurrency realm. The lawsuit had also affected the price of Bitcoin and other altcoins, causing single and double-digit losses for many.
Source: https://coinpedia.org/news/the-outcome-of-the-secs-case-against-binance-who-will-come-out-on-top/