Binance lawyers find a way to remove the SEC head from a legal case

Binance lawyers find a way to remove the SEC head from a legal case

Author: Robert Strickland (crypto-journalist)

Binance lawyers find a way to remove the SEC head from a legal case
Binance lawyers found a way to remove SEC head Gary Gensler from the lawsuit on the side of the prosecution
Lawyers said that Gary Gensler may become a witness in the case between the exchange and the regulator because of the "history of their relationship

According to CoinDesk, attorneys for Binance have attempted to remove Chief Judge Gary Gensler of the U.S. Securities and Exchange Commission (SEC) from the prosecution side of the case, citing a letter sent to the SEC by the exchange.

On June 5, the SEC filed a lawsuit against the world's largest cryptocurrency exchange, alleging violations of securities laws. Together, Binance Holdings Ltd., its U.S. subsidiary, and their founder, Changpeng Zhao, face 13 charges.

Binance's lawyers pointed out that the agency's chairman had previously been interested in some cooperation with the exchange. In 2019, Gensler "acknowledged the regulatory uncertainty surrounding cryptocurrencies and offered his services as an advisor" to Binance, attorneys told SEC staff.

Changpeng Zhao, head of the exchange, and Gensler met in person to discuss the BNB token and the opening of the Binance exchange in the United States. They then continued to communicate, and "Zhao realized that the current chairman was comfortable acting as an unofficial advisor," which is what Gensler himself suggested, according to court documents.

"Gensler should have been removed from the case given this history and the prospect that Gensler might become a witness in the case. To date, the SEC staff has never confirmed whether Gensler has recused himself and, if not, how the commission explains the reason for the recusal," Binance's attorney wrote.

The day after the filing of the lawsuit against Binance, the regulator asked the court to block the accounts of Binance's U.S. unit as a matter of urgency to avoid the alleged possible embezzlement of customer funds by the platform's executives.

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