Crypto exchange Binance wanted to appoint Gary Gensler as an advisor years ago when he took over the US Securities and Exchange Commission.
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Before Gary Gensler became the Chairman of the United States Securities and Exchange Commission (SEC), cryptocurrency exchange Binance had intended to invite him as an advisor, according to the Wall Street Journal.
The news agency cited a text of a conversation between Binance employees that said Gensler had turned down the exchange’s offer.
At that time, the current SEC Chairman was a professor at the Massachusetts Institute of Technology (MIT). In October 2018, Gary Gensler had a meeting with Ella Zhang – former Binance Investment Director, and Harry Zhou – an employee of Binance’s trading company.
“Although Gensler declined the offer to be a consultant, he was still very generous in sharing his experience related to the license,” Zhou wrote in a text message at the time.
This is not the first time Binance has sought to find common ground with the US government. The exchange has invited former Senator Max Baucus of Montana as Policy advisor and Liaison. On September 2022, the world’s largest crypto exchange, which had encountered many legal barriers, decided to establish a global advisory board, bringing together many prominent figures who are former government officials.
In addition, the Wall Street Journal also focused on the relationship between Binance and Binance.US, the US branch of the exchange. Binance has tried to blind the regulator with a US-based platform that it claims is completely separate from its global operations. However, the series of internal messages reflect the opposite, the two businesses are actually much more attached to each other. This relationship is also a “thorn” in the eyes of US officials, especially the SEC.
At a recent Voyager Digital bankruptcy hearing, an SEC official commented that “Binance.US is an unregistered securities exchange.” Last week, three Senators went on to accuse Binance of being a “hotspot for an illicit financial activity that has facilitated over $10 billion in dirty money and covered up sanctions evaders.”
Binance has also previously invited other US government officials, including former Senator Max Baucus of Montana, as advisors. Now that Binance and Binance US are under the attention of the authorities, the SEC is especially scrutinizing Binance’s activities in the US branch. Last week, three US senators sent out a letter “seeking more information” about Binance US and its operating relationship.