Binance Could Face More Charges: Former SEC Chief Predicts
Former SEC chief John Reed Stark comments on Binance's legal troubles, citing DOJ and SEC strict actions against the crypto firm.
The former SEC internet enforcement chief, John Reed Stark, recently made a statement regarding Binance's legal issues. He spoke especially about the moves that The U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) are making against Binance and its ex-CEO, Changpeng Zhao (CZ).
DOJ's Intense Scrutiny of Binance
Stark noted that they are closely watching binance and referenced some DOJ documents to further shed light on this. Documents like Binance's admissions, commitments to follow the rules, and DOJ monitoring details. This level of monitoring from the DOJ and Financial Crimes Enforcement Network (FinCEN) is unusual for a global financial company, Stark explained.
The DOJ also demanded that Binance follow strict rules in various aspects of their business. Stark believes implementing these could be expensive for Binance. The DOJ's monitoring covers many of Binance’s duties and several DOJ divisions will be supervising this.
In the ongoing SEC case against Binance, The SEC is using facts from Binance's DOJ agreement in its case against the firm and its former CEO. Stark explains how the fact that Binance admitted to avoiding U.S. laws in the DOJ case has strengthened the SEC's case against them. The SEC challenges Binance and CZ's claims of not knowing about legal violations.
Stark made a scary prediction. He compares the intense government monitoring of Binance to a thorough examination. He thinks Binance may find it difficult to be transparent and government-friendly. Stark also believes that the deal with the government might fail, leading to more charges against Binance and its associates.
