SEC's lawsuit brings new insights into the sudden resignation of Binance.US former CEO Brian Brooks.
The Securities and Exchange Commission's (SEC) recent complaint against Binance seems to offer a potential explanation for the resignation of Binance.US former CEO Brian Brooks.
In August 2021, Brooks resigned as a CEO only three months after his appointment. The move was sudden and surprising, leaving many in the crypto space questioning the motives behind such a move.
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A tweet on June 5th by a cryptocurrency lawyer recognized as MetaLawMan, James Murphy, brings attention to a cryptic clue in the SEC's complaint. The complaint refers to an "unnamed source," who briefly piloted Binance.US in 2021, coinciding with Brooks' tenure as the CEO.
Previously an esteemed banking regulator, on May 1st, Brooks took charge of the cryptocurrency exchange, succeeding the former CEO, Catherine Coley.
Intriguingly, certain statements in the complaint suggest Brooks felt that his role was more symbolic than executive, claiming that he believed that he was "not actually the one running this company." Coming to terms with this realization, he decided to resign, announcing his decision on August 7th.
However, Binance's Chief Communications Officer Patrick Hillman has refuted these speculations. Hillman suggested that this narrative might be a singular perspective and may not withstand the test of time.
These revelations came in the wake of the SEC's recent litigation against Binance. In the lawsuit, SEC accuses Binance of neglecting to register as a securities exchange and conducting illicit operations in the US.
Berenberg Capital's senior equity research analyst, Mark Palmer, noted that many points disclosed in the lawsuit seem familiar, mirroring those in previous lawsuits filed against US-based crypto exchanges, Bittrex and Kraken.
This revelation about Brooks' potential reasons for stepping down from Binance.US adds a new layer of intrigue to the SEC's actions against Binance. As the saga unfolds, market watchers will be keenly observing the impacts on Binance, Coinbase, and the cryptocurrency industry as a whole.
