Binance U.S Recruits Former SEC Official Amid SEC Lawsuit

• Canellos left the SEC in 2014 after serving in executive positions for more than 4 years.
• Binance.US said on June 9 that it will be restricting U.S. dollar deposits.

A former enforcement officer has reportedly been recruited by Binance US as part of its legal team to help defend itself against claims of operating as an unregistered securities exchange amid a lawsuit filed by the United States Securities and Exchange Commission (SEC).

George Canellos, previously of the SEC and now with the international legal company Milbank LLP, is one of the four attorneys the Binance U.S is said to have hired. Canellos left the SEC in 2014 after serving in executive positions there for more than four years.

Strengthening Defence Counsel

Moreover, an ex-head of the SEC’s internet enforcement section, John Reed Stark, tweeted that it’s clear Binance is preparing for a criminal trial by maintaining the services of the world’s premier defense attorneys.

Given the seriousness of the fraud charges brought by the CFTC and SEC, John claims that a DOJ prosecutor would seek prison time for anybody convicted or pleading guilty to offenses related to Binance.

Furthermore, as the SEC pursues legal action against the exchange for failing to register as an exchange, broker and clearing agency, Binance US has added Canellos to its US Legal counsel.

The SEC filed claims against Binance, a global exchange, and Coinbase, a U.S. exchange, in an effort to get an interim order freezing the assets of the U.S. exchange.

Binance.US said on June 9 that it will be restricting U.S. dollar deposits and perhaps freezing fiat withdrawals starting on June 13 in response to the SEC’s actions. According to the bourse, the SEC’s “extremely aggressive and intimidating tactics” were the deciding factor.

The Securities and Exchange Commission (SEC) has been criticized by lawmakers and industry leaders in the United States for its “heavy-handed” approach to crypto enforcement. Rep. Warren Davidson proposed legislation on June 12 to restructure the SEC, and in it he asked for the resignation of SEC Chair Gary Gensler.