02 March, 2024

Top Shareholder Defends Binance As the SEC Lawsuit Intensifies

8 months ago

20 Dec, 2023

In a series of recent interviews, the former Binance executive Yi He commented on the Securities and Exchange Commission’s (SEC) ongoing lawsuit against the crypto exchange Binance. The Chinese television host asserted that Binance is not a villain, is in a close proximity to regulators for compliance, and has not used user funds personally.

Yi He proclaimed in a recent Dubai interview that if the regulators had spared enough time to really understand the crypto industry, it would be apparent that if Binance is non-compliant, then no other global trading platform is compliant.

If they really took the time to understand our industry, they would see that if Binance isn’t compliant, then practically no other global trading platform or offshore company is.

In light of the recent allegations leveled by the US regulator on Binance, Yi He replied to a WhatsApp, an instant messaging app, message that the regulators’ crypto development approach is appreciated; regardless of the regulators’ stance being pro or otherwise for the crypto industry, regulation protects investors.

We respect the attitude of regulators, whether it supports or opposes the development of crypto. I understand that the overall intention of regulation is good in order to protect investors.

Notably, Columbia Business School adjunct professor Austin Campbell, believes “Binance is on the back foot. Regulators in the West are coming for that business model — either you have a fully separate custodian or there are much more strict rules about custody, handling of user funds, and bundling of duties.”

Upon being asked about the post-Zhao era speculation that has been emerging in the crypto industry, Yi He stated,

I think we’ll be fine. We’re not single points of failure.

Yi He has reportedly maintained that the crypto industry’s “trend of regulations is inevitable globally.” As per Yi He, Binance exercises transparency in its operations more than what its critics and regulators portray, and that the world’s largest crypto exchange has been sufficiently cooperating with the regulators in the US. Binance is alleged by the SEC to have illegitimately boosted trading volumes, mismanaged client assets, and didn’t have the required money-laundering systems in place.


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