Binance.US enlists all-star lawyer as it preps for government showdown

George Canellos led the SEC’s enforcement division until 2014

article-image

Zolnierek/Shutterstock modified by Blockworks

share

Binance.US is preparing for a legal showdown, and it’s beefing up its legal team ahead of a hearing scheduled for June 13. 

In a filing on Monday, George Canellos, a partner at Milbank’s New York office, declared himself as counsel for both BAM Trading and Management.

Canellos worked at the SEC as a co-director of its enforcement division from 2009 until 2014. He was part of the investigations that led to $570 million in sanctions in connection with misleading investors about residential mortgage-backed securities against JPMorgan Securities, Credit Suisse Securities, RBS Securities, and Bank of America following the 2008 financial crisis.

According to his biography page on Milbank’s website, Canellos has represented multiple executives and companies in SEC cases. 

A 2014 New York Times Dealbook article quotes former Commodity Futures Trading Commission Chief David Meister praising Canellos, saying that Canellos was “extremely well thought of” in the regulatory community.

Last week, the SEC sued Binance, Binance CEO Changpeng “CZ” Zhao, BAM Management and BAM Trading — which oversee Binance.US —with violations of the exchange and securities acts as well as alleged potential fraud. 

The SEC is currently seeking a temporary restraining order against the above defendants, and seeking specifically to freeze the assets of BAM Management and BAM Trading. 

In response, Binance.US announced last week that it would be pausing customer withdrawals and — at least temporarily — focusing on being an all-crypto exchange “as early as June 13.”

A hearing on the temporary restraining order is scheduled to take place on Tuesday, June 13. 

Binance.US declined to comment.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png

Research

With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.

article-image

The QT taper begins this month…but what does that mean for markets?

article-image

Plus, the rise of RWAs could bring about a significant shift in how real-world investments are managed and accessed

article-image

The distributed cell plan provider started selling its own hotspots in October 2023

article-image

The Brazil-based asset manager’s filing comes during a year of milestone bitcoin and ether fund approvals

article-image

The purchase of five sites in Georgia set to help CleanSpark hit its mid-year operating hash rate target of 20 EH/s

article-image

Plus, it’s beginning to look like we may be in for a cruel summer