In 2018, cryptocurrency exchange Binance tried to hire Gary Gensler as an advisor before he took over the US Securities and Exchange Commission (SEC). This is reported The Wall Street Journal.
According to the investigation, the platform approached Gensler with a job offer twice while he was teaching at the Massachusetts Institute of Technology. After the rejection, Ella Zhang, head of Binance VC, wrote in a work chat:
“I noticed that although Gensler turned down our offer, he was willing to share his licensing strategies.”
Gensler became chairman of the SEC in 2021. According to media reports, several other private companies approached him with a job offer.
The publication also found documents that explain the nature of the relationship between Binance and its US subsidiary. Fearing regulatory scrutiny, exchange executives took steps to mitigate such risks and set up a company in the US, the WSJ claims.
In conversation with Cointelegraph Binance representatives noted that both companies “have the same ultimate beneficial owner.”
“We admit that in the early years we did not have proper controls. Today we are a very different company when it comes to compliance. […] Binance.US was created specifically to provide US customers with products and services that comply with local regulations,” the platform added.
Recall that in early March, US senators called Binance “a hotbed of illegal financial activity.” They demanded that the exchange provide details on the policy KYC/AML and money laundering control procedures.
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