In a rather intriguing twist to the ongoing cryptocurrency saga, rumours have started to swirl around Binance, the world’s largest cryptocurrency exchange. It seems the Department of Justice (DOJ) might be preparing to file criminal charges against Binance and its CEO, Changpeng Zhao (CZ).
John Deaton, a Pro XRP lawyer and the founder of Crypto Law US, recently voiced his suspicions on Twitter. Deaton suggests that this manoeuvre could be SEC Chair Gary Gensler trying to “front run” the DOJ, claiming litigation territory first in an attempt to fulfil his own ambitions.
Deaton didn’t suggest the merit of these potential charges but rather emphasized how they fit the narrative of the current administration against cryptocurrency. He goes further to state that this “war against innovation” will be a significant topic in the upcoming 2024 elections.
Binance US: Staunch Defence
Binance’s US division is not taking these allegations lying down. In response to the SEC filing for a temporary restraining order (TRO) and a preliminary injunction to freeze Binance’s US corporate assets, the firm tweeted that the SEC’s actions represent “legal manoeuvring rather than genuine concern for Binance US customers and the safety of their assets”.
Binance US argues that the SEC is more interested in political grandstanding and expanding its jurisdiction than protecting consumers or encouraging businesses to thrive in the US. Despite the looming legal action, Binance US continues to operate normally, assuring customers that their assets remain secure.
Engaging in Battle
Binance US also emphasized that the SEC had never expressed concerns about the safety of customer assets until recently, despite years of engagement. They argue that the filing for a preliminary injunction is more about the SEC gaining an advantage in litigation than it is about genuinely safeguarding customer assets.
Despite the disappointing action by the SEC, Binance US remains unflinching. They’re prepared to defend themselves in court, promising to keep providing uninterrupted services to their customers.
How these events unfold will not only affect Binance and its vast customer base but will also have far-reaching implications for the wider cryptocurrency market and its acceptance in the United States.
One thing is clear: the outcome of these battles will be a major talking point in the upcoming 2024 elections.