Indeed, Binance, the world’s largest cryptocurrency exchange platform, is bolstering its legal defense by hiring former officials from the US Department of Justice (DOJ) and Securities and Exchange Commission (SEC). This despite ongoing investigations by these same agencies.
Why is Binance hiring former DOJ and SEC officials?
According to a Bloomberg report, Binance recently added Kendall Day, a former DOJ white-collar prosecutor, to its legal team. He will represent the firm in the SEC case and brings with him 15 years of experience as a former acting assistant prosecutor at the Department of Criminal Justice. He was also head of the department’s Anti-Money Laundering and Asset Recovery Section.
The SEC lawsuit is just one of the legal challenges facing the exchange platform. Binance has recently been in the spotlight due to the growing number of investigations by other US government agencies, including the DOJ.
What are the current investigations into Binance?
Last May, the DOJ began investigating Binance for possible violations of Russian sanctions. The agency is investigating whether the exchange platform was involved in illegal activities, enabling Russians to circumvent US sanctions and transfer money via the platform.
Interestingly, Binance has been under investigation in the US since 2018, notably as part of an investigation into alleged violations of anti-money laundering (AML) regulations by the DOJ. The investigation focuses on Binance’s alleged involvement in money laundering, unlicensed money transmission and violations of criminal sanctions.
How is Binance preparing for these legal challenges?
To strengthen its legal defense against these challenges, Binance has launched a recruitment drive to hire experienced professionals. Recently, Binance US hired former SEC enforcement co-director George Canellos and three other attorneys from Milbank LLP.
It’s important for users of cryptocurrency exchange platforms to keep abreast of legal and regulatory developments that could affect their use of these services. Applications such as cryptoview.io can be useful for keeping up with the latest news and trends in the cryptocurrency market.
This article does not constitute investment advice and we remind you that investments in cryptocurrencies carry risks of capital loss.
