Binance lawyers allege SEC Chair Gensler offered to serve as advisor to crypto company in 2019

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Years before he began taking on Binance as head of the SEC, Gary Gensler offered to advise the company, according to the crypto exchange's lawyers.

Earlier this week, the SECagainst Binance and Zhao, alleging the company failed to register as an exchange and broker-dealer, improperly commingled funds and lacked critical internal controls over its businesses.

on Gensler and Binance's relationship, citing internal Binance messages and a person close to the SEC chair. Both suggested that Binance approached Gensler.Latham attorneys say that Zhao continued to stay in touch with Gensler after the March meeting. And at the future SEC chair's request, Zhao sat down for an interview with Gensler as part of a cryptocurrency course he was teaching at MIT.

Later in 2019, the letter said, Gensler was slated to testify before the House Financial Services Committee, and he sent Zhao a copy of his intended testimony ahead of the hearing. "I do not advise any financial, technology, blockchain or other companies, nor do I own any cryptocurrencies," Gensler's prepared testimonyGensler's advice to lawmakers at the time was largely the same as his public statements today. He said that, with Facebook envisioning a wallet to store customer assets, rules needed to be in place "to guard against Calibra's use or potential abuse of such customer funds.

 

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