SEC complaint sparks questions on former Binance.US CEO’s sudden departure

The US SEC’s complaint against Binance has unveiled intriguing details surrounding the sudden departure of former Binance.US CEO Brian Brooks in August 2021, merely three months into his tenure.

The complaint references an undisclosed source who briefly oversaw Binance.US operations during the same period, coinciding with Brooks’ tenure.

Renowned cryptocurrency lawyer James Murphy, popularly known as MetaLawMan on Twitter, shared this revelation in a tweet on June 5. The dates outlined in the complaint align precisely with Brooks’ leadership at Binance.US following his appointment on May 1, 2021, succeeding former CEO Catherine Coley.

Allegedly, Brooks swiftly realized that he held no actual control over the company, prompting him to step down and publicly announce his resignation on August 7.

However, Binance’s Chief Communications Officer, Patrick Hillman, has cast doubt on Murphy’s speculations, suggesting that they may represent the subjective perspective of a single individual and may not withstand scrutiny over time.

Mounting legal troubles plague Binance

These revelations arrive amidst the SEC’s filing of 13 charges against Binance, accusing the exchange of operating as an unregistered securities exchange and engaging in illicit activities within the United States.

The SEC asserts that Binance unlawfully solicited US customers to trade assets on unregistered platforms. Moreover, the regulator alleges that Binance’s CEO, Changpeng Zhao, and the exchange itself were directly involved in the operations of Binance.US, contrary to prior claims made by the defendants.

In a parallel development, the Commodity Futures Trading Commission (CFTC) has also sued Binance for conducting business without proper registration, thereby violating the Commodity Exchange Act.

In the face of mounting regulatory issues, reports suggest that Binance might soon welcome a new CEO, Richard Teng, recently appointed to oversee the exchange’s regional markets outside the United States.

Binance’s response to SEC’s allegations

Binance has disappointedly responded to the SEC’s claims, expressing dissatisfaction with the agency’s decision to file an emergency complaint seeking relief against the exchange.