Unveiling the Advisory Offer
In a twist of events, lawyers for the cryptocurrency titan Binance and its founder, Changpeng Zhao, have stepped into the spotlight alleging that Gary Gensler, Chair of the SEC, once had a different career path in mind—one that involved serving as an advisor to Binance back in March 2019. And before you can say ‘cryptocurrency volatility,’ this claim has sent shockwaves through the crypto community.
The Initial Approach: Binance’s First Move
Interestingly, a report from March by The Wall Street Journal counters this narrative, stating that Binance actually threw the first curveball in 2018 by trying to recruit Gensler for the advisory role. It’s like a game of hot potato where everyone wants to pass the discomfort but no one really knows how it all started. According to documents, Ella Zhang and Harry Zhou made the initial pitch to Gensler in October 2018. He later politely declined; talk about a missed opportunity!
Gensler’s Academic Interlude
Before stepping into the tumultuous waters of the SEC, Gensler was not just another suit; he was a professor at MIT, dabbling in global economics and management. During his time at MIT, several companies, presumably sensing his academic prowess, sought him out for advisory roles. However, all offers were declined. Could it be he preferred the freedom of academic life rather than the shackles of corporate obligations? Maybe; after all, who wouldn’t want to rock a sweater in academia versus a tie at a boardroom table?
A Storm Brews: The SEC’s Legal Action Against Binance
Fast forward to June 5, 2023, and the SEC decided to shake things up with a lawsuit against Binance, alleging illegal operations and illegal sale of unregistered securities (cue dramatic music). With a total of 13 charges, including those pesky BNB and Binance USD tokens and their staking program, it’s safe to say Binance is going to have a busy calendar ahead.
Binance’s Bold Response
In an audacious PR move, Binance took to its Chinese social media networks to declare its differences from other exchanges under scrutiny. Making a pointed reference to FTX, which has seen its fair share of legal tribulations, Binance proclaimed it as a transparent entity that does not siphon consumers’ funds. “We don’t play that game,” they appeared to say, hoping to distance themselves from the sinking ship of FTX.
Social Media Tensions and Controversy
Not one to shy away from a Twitter spat, Zhao took aim at the SEC’s past decisions, questioning why FTX never faced the same fate despite Gensler sounding alarm bells about overlapping issues between the two companies. “They didn’t sue FTX,” he pointed out, leaving the Twitterverse in a frenzy. Perhaps the biggest irony is that despite the alleged parallels between the two giants, only one is swinging on the legal ropes, while the other dances with regulatory grace.
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