Crypto regulation in the United States is increasingly chilling. Regulators in the country are suing crypto companies for different reasons. Also, Binance is among the companies they decided to target. Indeed, the crypto exchange is under intense scrutiny from several US regulators. Binance has to deal with the Commodity Futures Trading Commission, the SEC, and the Department of Justice, among other things.
CZ hires multiple lawyers to deal with regulators
For some time, Binance has found itself in the sights of the American authorities. The situation is worrying and frightens some customers of the exchange. Nansen revealed that nearly $1 billion has been withdrawn from the platform since the start of the month. In this context, the CEO of the largest crypto exchange has recently engaged lawyers at Latham & Watkins. It has been reported that the lawyers will represent Binance and personally CZ in the brewing legal storm.
“Binance has an array of law firms to orchestrate its defense. Zhao hired at least four Latham & Watkins lawyers, while the company was represented by half a dozen Gibson Dunn lawyers in its discussions with the Justice Department and U.S. regulators, according to court documents and people with knowledge of the case», reported the New York Times.
Regulators Sue Binance Over Earlier Issue
William Kraus, a partner at FisherBroyles LLP, called attention to thinking that Binance’s troubles are tied to the current climate. He explained : “While it may seem like Binance is being targeted due to recent political pressure to regulate digital assets, it’s important to remember that most investigations are conducted confidentially for years before the public takes notice. awareness“.
“As the CFTC complaint shows, investigations often revolve around alleged past conduct or relate to issues that have since been resolved by the company.said the partner at FisherBroyles LLP.
William Kraus warned crypto companies wanting to set up in the United States. He said they should expect to navigate “a complex and frequently changing legal and regulatory landscape“. Also, it looks like the SEC is cracking down on crypto because it puts the dollar at risk.
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