Adam Cochran, a crypto investor and partner at Cinneamhain Ventures (CEHV), shared his observations on Twitter that the Securities and Exchange Commission (SEC) may use private correspondence from Binance employees in gathering evidence.
Cochran did not say how the SEC got hold of the transcripts of the employee chats, but expressed concern that the information could be interpreted by the court not in favor of Binance.
According to Cochran’s statement, the SEC provided the court with a transcript of the conversation that said it unblocked the transactions of U.S. users. The exchange staff speculated about what to do so that U.S. users could use foreign KYCs and the system would ignore their IP addresses.
In addition, in his tweets, Cochran cites some of the correspondence from senior Binance employees who discussed the causes and consequences of BNB exchange’s own crypto-asset crash, as well as opportunities to circumvent prohibitive measures by U.S. regulators to operate without a license.
Commenting on the leaked proprietary information and Cochran’s series of tweets, Binance exchange chief Chanpen Zhao reached out to employees and asked them to be discreet in their personal correspondence.
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“I want to remind everyone that Binance is cooperating with investigators, and as a rule, investigative agencies ask for our chat history. So remember that everything you say may someday end up in court. It’s ridiculous for the SEC to use this information as an argument, but let our lawyers take care of it. More importantly, if you are not satisfied with your job at Binance, you should talk to your manager and seriously consider your future career options. Don’t waste your energy and your life on things you don’t like,” Zhao wrote.
Earlier, SEC Chairman Gary Gensler compared the cryptocurrency market to the stock market of the 1920s, teeming with fraudsters and manipulators.