- John Deaton speculates about potential criminal charges by the DOJ against Binance.
- Deaton suggests the SEC Chairman is front-running the U.S. justice system.
- Binance faces legal uncertainty as the SEC lawsuit progresses.
As the U.S. Securities and Exchange Commission (SEC) pursues legal action against Binance, speculation is growing about potential criminal charges being filed against the largest crypto exchange by the U.S. Department of Justice (DOJ).
Prominent crypto lawyer John E Deaton recently took to Twitter, expressing his belief that the DOJ might indeed bring criminal charges against Binance and its CEO, Changpeng Zhao (CZ).
Deaton tweeted:
While emphasizing that he was not suggesting whether or not the DOJ should file charges or assessing the merit of such a move, Deaton interpreted the SEC’s lawsuit against Binance as the SEC chairman attempting to preempt the DOJ’s potential actions and stake a claim in the litigation process.
Deaton added:
Gensler has ruthless ambition. The criminal charges will also fit this Administration’s narrative against crypto.
Notably, according to the court document of the filing by the U.S. regulator, the lawsuit against Binance is a civil action.
Furthermore, Deaton suggested that the criminal charges, if filed, would align with the current administration’s stance against cryptocurrencies, potentially making Bitcoin, crypto, and the government’s alleged war on innovation significant topics in the upcoming 2024 election.
While the SEC lawsuit has already put Binance in a precarious legal position, the possibility of additional criminal charges from the DOJ further compounds the challenges faced by the exchange.
Binance has expressed disappointment in the SEC’s complaint, especially considering its multiple settlement attempts. It has pledged to defend itself vigorously in the court. Interestingly, the SEC filed a lawsuit against Coinbase, one of Binance’s leading rivals, barely 24 hours after launching its action against Binance.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
