Binance, one of the largest cryptocurrency exchanges, has received charges of securities violations from the US Securities and Exchange Commission (SEC). The charges were filed against Binance CEO Changpeng Zhao and various associated companies on June 5.
Support from Huobi Advisor and Former TRON CEO
Following the news of the charges, Huobi advisor and former TRON CEO Justin Sun expressed his support for Zhao in a tweet. Sun stated that he has unwavering support for Zhao and believes in his integrity. Sun further praised Zhao’s leadership skills and called him an honest and upright person.
While the extent of Sun and Zhao’s relationship is unknown, some reports suggest that Binance provided preferential treatment for Sun’s TRX token. Additionally, Sun and his related projects, including TRON, faced SEC charges in March, which have not yet been settled.
Comments by Creator of Cardano and CEO of IOHK
Charles Hoskinson, the creator of Cardano and CEO of IOHK, also commented on Binance’s situation. He warned that the SEC’s charges could be a sign of wider action and the implementation of what he calls “chokepoint 2.0”. Hoskinson believes that the end goal is a Central Bank Digital Currency partnered with a handful of massive banks, giving them control over every aspect of people’s financial lives.
Hoskinson further complained that the SEC is unelected. However, SEC members are appointed by the elected government under the advice of Senate members. Despite his concerns, Hoskinson believes that the cryptocurrency industry will be fine and that this sort of conflict is not entirely new.
Binance Plans to Defend Itself Against the SEC
Binance plans to defend itself against the SEC charges and has stated that it will not settle without admitting or denying wrongdoing, as many other companies have done. The charges against Binance and its CEO come amid an increased regulatory crackdown on the cryptocurrency industry in the United States.
Binance has received support from the cryptocurrency industry after being charged with securities violations by the SEC. Justin Sun expressed his support for Binance CEO Changpeng Zhao, while Charles Hoskinson warned that the SEC’s charges could be a sign of wider action. Binance plans to defend itself against the charges and has stated that it will not settle without admitting or denying wrongdoing.