• Former Binance.US CEO Catherine Coley has hired a lawyer with CFTC ties to represent her in the Binance lawsuit.
• The CFTC recently sued Binance and its CEO for operating an illegal exchange in the US.
• Recent revelations could sound alarm bells in Binance amid its ongoing legal troubles.
Binance Lawsuit: Former CEO Hires Lawyer with Ties to CFTC
Catherine Coley, the former Binance.US CEO, has hired James McDonald, a former federal prosecutor at the Commodity Futures Trading Commission (CFTC), to represent her in the U.S. government’s investigations into Binance.
Background of Coley’s Departure and Legal Battle
Coley was the CEO of Binance.US for two years, from April 2019 to April 2021 when she departed from her position under strange circumstances without being mentioned in the press release by her former employer.
In January 2022, she filed a lawsuit against her former employer which prompted the government sought records of all her communication involving Binance and Binance.US.
CFTC Sues Biace and Its Founder
On Monday, the CTFC charged Binance and its founder Changpeng Zhao for operating an „illegal“ exchange in the US. The lawsuit alleges that Binance sought to profit from trading without registering with the agency or complying with anti-money laundering laws.
Implications of Legal Troubles on Crypto Industry
The ongoing legal battle between Coley and Biance could significantly impact how centralized exchanges go about their business in future.
Recent revelations around this case could sound alarm bells in crypto industry as regulatory scrutiny over crypto increased significantly after collapse of FTX exchange .