In court filings made public this week, Brian Brooks, the former CEO of Binance.US, explained why he quit his position at the exchange.
Brooks was questioned by the SEC in December 2021, and the transcript reveals that he was probed about Binance CEO Changpeng Zhao’s involvement with the US exchange.
“The reality is that CZ was BAM Trading’s CEO registered on me at a specific time.” According to the court papers on Tuesday, Brooks said this became apparent at a particular time.
The current regulatory action against Binance centres on BAM Trading and BAM Management, which operate as Binance.US.
Brooks stepped down as CEO of cryptocurrency exchange Binance.U.S. sometimes after joining. Previously, he was the acting head of the US Treasury office responsible for supervising and regulating financial institutions such as national banks and federal savings organisations.
In his 2021 interview with the SEC, Brooks differentiated between the board’s function of governance and the CEO’s management job. It seems Brooks was “overruled” when he tried to make changes.
After 80 days of working together, Brooks and his coworkers suddenly found themselves at odds over fundamental issues.
Due to their “blatant disregard of the federal securities laws,” the SEC filed suit against Binance and CZ, laying out 13 counts of wrongdoing.
The SEC said that Binance was founded by Zhao and Binance “as part of a complex plan to evade” US regulations.
Also Read: Binance-SEC Litigation Causes A Delay In Gopax Purchase By South Korean Regulators
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