Overview
• The U.S. Securities and Exchange Commission (SEC) recently filed a lawsuit against Binance, along with its CEO Changpeng Zhao (CZ).
• John Reed Stark, a former high-ranking official in the SEC, believes that Binance may be preparing for a potential criminal prosecution in the United States.
• George Canellos, a former government prosecutor and current partner at the law firm Milbank LLP, was added to Binance’s legal defense team.
SEC Lawsuit Against Binance
The U.S. Securities and Exchange Commission (SEC) recently filed a lawsuit against cryptocurrency exchange Binance, along with its CEO Changpeng Zhao (CZ). The SEC alleges that CZ provided unlawful trading services to American investors by offering unregistered securities on the platform and failing to implement proper anti-money laundering procedures.
John Reed Stark’s Analysis of Situation
John Reed Stark, a former high-ranking official in the U.S. Securities and Exchange Commission (SEC), believes that Binance maybe getting ready for a potential criminal prosecution in the United States. He took to his Twitter handle and highlighted the addition of George Canellos, a former government prosecutor, to Binance’s legal defense team as an indication of the exchange’s anticipation of facing legal action. Canellos has extensive experience in prosecuting and defending white-collar criminal cases related to securities laws over two decades of experience in this field.
George Canellos‘ Experience
George Canellos is currently a partner at Milbank LLP law firm and he has previously worked at the SEC including serving as co-director of its enforcement division and as an assistant US attorney at Southern District of New York US Attorney’s Office . Given how serious fraud allegations made by SEC and CFTC are against Binance , John Reed Stark predicts that if individuals are convicted of crimes related to this exchange , DOJ may possibly seek prison times .
Conclusion
Binance is clearly preparing for potential criminal prosecution by adding George Canellos on their legal defense team . Even though they have hired some experienced lawyers , it remains uncertain whether they will be able to get out from their current perilous legal quagmire or not .