Gary Gensler had close ties to Binance’s CZ, offered to serve as exchange advisor: lawyers
Lawyers in Binance’s securities litigation allege that SEC Chairman Gary Gensler once offered to serve as an adviser to Binance, CNBC reports. June 7.
Gensler met CZ and offered him a role as an advisor to Binance
The U.S. Securities and Exchange Commission (SEC) sued Binance on June 5 for alleged securities violations. CNBC has now obtained documents suggesting that Binance’s attorneys have offered Mr. Gensler to serve as an advisor to Binance’s parent company.
Gensler and Binance executives reportedly discussed this prospect extensively in March 2019, with Gensler having lunch with Binance CEO Chao in Japan later that month.
After that, the two continued to keep in touch. Zhao then joined the interview as part of a cryptocurrency course Gensler previously taught at MIT. Additionally, when Gensler testified before the House Financial Services Committee in 2019 about Facebook’s Libra cryptocurrency, he sent a copy of his remarks to Zhao.
An earlier Wall Street Journal report cited by CNBC suggested that Binance officials approached Gensler to serve as an advisor in 2018 as well.
Are there conflicts of interest?
Because Mr. Gensler appears to have extensive ties to Mr. Zhao and Binance, Binance’s attorneys have sought to vacate the lawsuit in advance of the lawsuit, which Mr. Gensler has filed against any SEC lawsuit against Binance for conflicts of interest. This means that we need to continue to be involved in
However, Binance did not receive a response when it first asked for a retraction. Additionally, the SEC reportedly didn’t begin its investigation into Binance until around 2020, months after Chao and Gensler likely last contacted each other.
The SEC seems to think it’s fine. The agency told CNBC that Gensler “knows and [in] Full compliance with ethical obligations” (including refusal).
Gensler’s previous involvement in the cryptocurrency industry has been noted for some time. His apparent endorsement of Algorand came to the fore in April 2023. Although tangential, the relationship between Gensler and FTX officials has also been pointed out.
Gary Gensler has close ties to Binance’s CZ and has offered a role as an exchange advisor: an article saying the lawyer first appeared on CryptoSlate.
