![]() He’s now the co-chair of his firm’s securities enforcement practice.īAM Trading Services, which operates Binance’s US exchange, hired William McLucas of Wilmer Cutler Pickering Hale and Dorr. The hires include Richard Grime from Gibson, Dunn & Crutcher, who was formerly assistant director of the enforcement division at the SEC. Binance Teamīinance has hired former SEC leaders from big-name defense firms in a sign it is gearing up for a protracted court battle. The designation comes with strict investor protection rules and could cause US-based exchanges to drop the tokens.īinance and Coinbase issued statements denying the claims. The lawsuits threw a regulatory blanket over $120 billion of crypto tokens the SEC deemed to be unregistered securities. “The legal resources required for these companies is significant.” “Both companies have been gearing up for this, especially over the past six, eight months,” said Robert Le, senior analyst for PitchBook Data. Now legal teams are helping Binance and its chief fight an SEC lawsuit filed June 5 in Washington, alleging that they mishandled customer funds, misled investors and regulators, and broke securities rules.Ī day later, the SEC sued Coinbase in federal court in New York, alleging the firm for years broke its rules by letting users trade numerous tokens that were unregistered securities. Kirkland & Ellis through March billed nearly $60 million for its work representing three bankrupt crypto exchanges-Voyager Digital Holdings Inc., Celsius Network LLC and BlockFi Inc.-according to court documents. ![]() Firms including Quinn Emanuel Urquhart & Sullivan and Paul Hastings also have roles in the case. in its Chapter 11 proceeding, court documents show. Sullivan & Cromwell through April billed more than $80 million in legal fees for its work representing FTX Ltd. “This is their ultimate fight.”īankruptcy lawyers have been some of the biggest winners in the crypto sectors troubles that stretch back for months. “They’re hiring the best of the best because it is really the future of centralized exchanges that is on the line in the United States,” said Ghodoosi, who has written about the extent of litigation facing crypto companies. Binance and Coinbase are making lawyers big winners in life-or-death struggles against the US Securities and Exchange Commission, as the crypto companies start spending what will ultimately tally tens of millions of dollars in legal fees.įees from the lawsuits the SEC filed last week could stretch from $50 million to $100 million, said Farshad Ghodoosi, an assistant professor of business law at David Nazarian College of Business and Economics at California State University, Northridge.īinance, its chief executive Changpeng Zhao, and Coinbase have assembled all-star defense teams of former top SEC lawyers who now work at high-powered firms including Sullivan & Cromwell, Wachtell, Lipton, Rosen & Katz, Gibson Dunn, Milbank, Latham & Watkins and WilmerHale.
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