A crypto lawyer suggests that fresh information unveiled in the SEC complaint may provide an explanation for the sudden resignation of Brian Brooks as CEO of Binance.US in 2021.
Cryptocurrency lawyer James Murphy, also known as MetaLawMan on Twitter, suggests that the recent SEC complaint filed against Binance may shed light on the reason behind the abrupt resignation of former Binance.US CEO Brian Brooks in August 2021, a mere three months after assuming the position. Murphy points out in a tweet on June 5 that the SEC complaint references an individual, referred to as an "unnamed source," who briefly headed Binance.US during the same period when Brooks was serving as CEO. The timeline aligns with Brooks' tenure at Binance.US.
After taking over as CEO of the crypto exchange on May 1, 2021, Brian Brooks, a former prominent banking regulator, assumed the responsibilities previously held by Catherine Coley. However, statements mentioned in the SEC complaint indicate that Brooks soon became aware that he was not truly in control of the company's operations. This realization prompted his decision to step down, and he publicly announced his resignation merely three months later, on August 7.
Contrary to Murphy's speculation, Binance Chief Communications Officer Patrick Hillman has expressed his disagreement, suggesting that this viewpoint could be attributed to the perspective of one individual and may not withstand scrutiny over time. Hillman has pushed back on the notion put forth by Murphy.
Cointelegraph has contacted Binance.US and Brooks for their comments on the matter but has not received a response thus far.
This revelation follows the recent actions taken by the United States Securities and Exchange Commission, which has filed a series of 13 charges against Binance. The charges allege that Binance failed to register as a securities exchange and engaged in unlawful operations within the United States.
The announcement had a significant impact on the cryptocurrency market, causing turmoil in the prices of various digital assets such as Bitcoin and Ether. Over the past 24 hours, Bitcoin and Ether have experienced declines of 5.6% and 4.3% respectively, as reported by the Cointelegraph Price Index.
Furthermore, publicly-traded crypto companies in the United States also suffered a substantial drop in their stock prices. Coinbase (COIN), for instance, witnessed a sharp decline of 9% during the regular trading hours on June 5.
Palmer opines that these combined cases offer a glimpse into the potential legal action that could be taken against Coinbase.
If the SEC were to focus on Coinbase's crypto token trading and staking operations, it is estimated that a minimum of 37% of COIN's net revenue would be endangered.
