Binance and CEO build muscle in the fight against SEC lawsuit, bring in an all-star lawyer

Binance and CEO Changpeng Zhao, alias CZ, could be readying for a criminal lawsuit in the ongoing battle between the two household names in the crypto industry and the United States Securities and Exchange Commission (SEC).

Also Read: Two key dates over the SEC request to freeze Binance assets

Binance and CZ prepare for a criminal lawsuit with a heavy recruit

Binance and Changpeng Zhao are not leaving anything to chance in the current legal tussle with the US SEC. According to a recent announcement by former Chief SEC Office of Internet Enforcement John Reed Stark, the two defendants have brought in the services of George Canellos, one of the most decorated criminal defense attorneys in the US specializing in digital assets.

Canellos has a profound history serving as the former Chief of the Major Crimes Unit in the US Attorney's Office for the Southern District of New York. He is also the former head of the SEC's New York Office and former SEC Enforcement Division Co-Director.

According to Stark, Canellos brings forth a unique and remarkably special set of skill sets accumulated during his professional tenure as both an SEC and a DOJ prosecutor.

Stark, who likens the Binance and CEO's choice of legal representative to a confrontation between one of the greatest Hollywood stars, Liam Neeson, and fictional American trial lawyer and detective, Perry Mason, believes "Binance is clearly preparing for a criminal prosecution." Notably, by any standards, Canellos is among the best defense attorneys globally, particularly in this matter.

Binance still faces an uphill task with the SEC

Nevertheless, despite Binance and CEO Changpeng Zhao's move to bring in the big muscle lawyer, Stark still believes the defendants face an uphill task in their fight against the federal regulators. In his words:

…But I doubt even Ironman, Captain America, and the Hulk could get Binance out from their current perilous legal quagmire.

Notably, Binance and CZ's lineup of lawyers in the fight against the SEC's latest lawsuit is outstanding, comprising former SEC officials. These are:

• Richard Grime, a former Assistant Director of the US SEC Enforcement Division- represents Binance through Gibson Dunn & Crutcher LLP.
• Douglas Yatter, Benjamin Naftalis, William R. Baker, and Eric Volkman from Latham & Watkins LLP- represent Changpeng Zhao.
• Bill McLucas, a highly regarded former US SEC Director of Enforcement for legal counsel- represents BAM Trading.

It is worth mentioning that Baker is a former Associate Director of the US SEC Enforcement Division. Seeming, the defendant is using the plaintiff's former weaponry in its defense. This could bode well for Binance and CZ, considering the knowledge and insight the legal professionals represent in the industry and the agency.

On the other hand, the SEC's corner features Matthew Scarlato, a former US DOJ civil prosecutor, Jennifer Farer, a former US DOJ criminal fraud prosecutor, and J. Emmett Murphy, a former litigation partner at King & Spalding.

Nevertheless, given the gravity of the fraud alleged by the Commodities and Futures Trading Commission (CFTC) and the SEC, which may also be the tip of the iceberg of any criminal indictment, Stark defends that a US Department of Justice (DOJ) prosecutor would still go for prison time for anyone convicted or pleading guilty to Binance-related crimes.