On June 5, the U.S. Securities and Exchange Commission (SEC) filed charges against Binance CEO Changpeng Zhao and various associated companies for alleged securities violations. Following this news, other members of the cryptocurrency industry expressed their support for Zhao and Binance.
Huobi advisor and former TRON CEO Justin Sun took to Twitter to express his unwavering support for Zhao, stating that he trusts and believes in Zhao’s integrity. Sun also commended Zhao’s leadership skills and called him an honest and upright person. Sun believes that Zhao will be able to handle the lawsuit and prove his innocence.
However, the extent of Sun and Zhao’s relationship is unclear. While they claim to have a limited business relationship, reports suggest that Binance provided preferential treatment for Sun’s TRX token. In May 2023, a conflict arose over Sun’s use of Binance. Sun and his related projects, including TRON, faced their own set of SEC charges in March, which has not yet reached a settlement.
Charles Hoskinson, the creator of Cardano and CEO of IOHK, also commented on the situation, warning that the events could be a sign of wider action. He believes that the SEC’s latest action is an expression of the regulator’s political and philosophical disagreement with the existence of cryptocurrency itself. Hoskinson also complained that the SEC is unelected, but SEC members are appointed by the elected government under the advice of Senate members.
Despite his concerns, Hoskinson believes that the cryptocurrency industry will be fine and that this conflict is not entirely new. He said that regulatory events typically involve a discussion about compliance with law or guidance, but the SEC’s latest action goes beyond that and is more of an expression of the regulator’s views on cryptocurrency.
Binance has stated that it plans to defend itself against the SEC and will not settle without admitting or denying wrongdoing, as many other companies have done. The charges against Binance and Zhao have caused some concern in the cryptocurrency industry, but they have also received support from some of their peers.
Binance and Zhao have received support from other members of the cryptocurrency industry after the SEC filed charges against them for alleged securities violations. Sun and Hoskinson expressed their support for Zhao and Binance, while also warning about the wider implications of the SEC’s actions. Binance plans to defend itself against the charges and not settle without admitting or denying wrongdoing. The cryptocurrency industry will likely continue to face regulatory challenges, but some believe that it will ultimately prevail.