Binance received support from other members of the crypto industry on June 5, after receiving allegations of securities violations on the same day.
TRON Founder Expresses Support
The US Securities and Exchange Commission (SEC) filed charges against Changpeng Zhao, the CEO of Binance, and various affiliated companies.
Following that news, Huobi advisor and former TRON CEO Justin Sun expressed support for Zhao. one in twitter messageSuraj wrote:
“I wanted to take a moment to express my unwavering support for you. As a friend of mine, I trust you and believe in your integrity. We are here for you!”
Sun said that Zhao’s “abilities and morals are beyond reproach” and called Zhao an “upright and honest person”. He also praised Zhao’s leadership skills.
Sun said he believed Zhao would be able to handle the trial and prove his innocence. Binance has said it plans to defend itself against the SEC, as have many other companies that have opted not to settle without admitting or denying wrongdoing.
The extent of Sun and Zhao’s relationship is unknown. While two persons maintain that they have a limited business relationship, some reports Suggest that Binance has provided preferential treatment to Sun’s TRX token and the two have been viewed individually together. Incidentally, controversy arose in May 2023 over Sun’s use of Binance.
Sun and his related projects – including TRON – faced SEC charges of their own in March. That matter has not yet reached its resolution.
Hoskinson warns of wider action
Charles Hoskinson, the creator of Cardano and CEO of IOHK, also commented on the situation on Binance. He warned that the incidents could be a sign of wider action. They said,
“(It) seems like the next in a series of steps to implement Chokepoint 2.0…the end goal is an agenda-based (central bank digital currency) partnered with a handful of big banks and designed to be a part of your financial life.” controls every aspect.”
Hoskinson said that, while regulatory incidents involve debate about compliance with the law or guidance, the SEC’s latest action is an expression of the regulator’s “political, philosophical disagreement” with the existence of cryptocurrencies.
Hoskinson also complained that the SEC was unelected. However, SEC members are appointed by the elected government under the advice of the Senate members.
Despite his concerns, Hawkinson said he believes the cryptocurrency industry is “going to recover” and added that this kind of struggle is not entirely new.