- He will be represented by lawyers from Latham & Watkins.
- SEC, CFTC and MOJ are investigating CZ and Binance
- At the same time, the authorities already have some progress.
Binance CEO Changpeng Zhao has hired white collar workers from their agency Latham & Watkins. He appears to be taking the CFTC (Commodity Futures Trading Commission) lawsuit very seriously.
About it informs portal NYT with reference to its sources. Details of the new deal are unknown, but Latham & Watkins’ sharks will represent Zhao personally.
The magazine points out that this is “the most dangerous moment in the history” of the exchange. And it’s not just the CFTC lawsuit. The SEC (Securities and Exchange Commission) and the Ministry of Justice are also “digging” under Zhao.
The latter are investigating both Binance and its CEO personally. Zhao is accused of non-compliance and aiding money laundering through the trading platform.
All three agencies declined to comment on the situation. There were also no new comments from Zhao. Prior to that, he called the CFTC lawsuit a “disappointment.”
The outflow of capital from the site has slowed down ($1 billion in April against $2 billion in March), but the exchange’s clients are still scared. Well, the fact that the American “daughter” of the company canceled the deal to buy Voyager Digital only reinforces these fears.
As a reminder, Binance.US referred to an “adverse regulatory climate.” In fact, the firm probably knows that the ring around the company is shrinking.
The NYT, citing sources in the Department of Justice, claims that the investigation is actively underway. At the same time, the SEC is engaged in the case. And they are unlikely to back down.