John Reed Stark, former head of the Securities and Exchange Commission’s (SEC) Internet Enforcement Office, has once again highlighted the resignations of top executives targeting the world’s largest cryptocurrency exchange, Binance. Stark believes that the departing high-level executives from Binance provide an opportunity to provide internal information about Binance, which is already under investigation by law enforcement agencies and other authorities.
Stark: Resignations of Top Binance Executives Could Hit Binance
Former senior SEC official John Reed Stark commented on the ongoing executive resignations at Binance. Stark pointed out that many top executives leaving the cryptocurrency exchange and the termination of some employees, despite being a relatively new company, have created an unusually long list of departed senior employees at Binance, and these individuals have inadvertently become ideal bait for collaboration with law enforcement authorities.
Stark believes that employees who have resigned or been terminated from Binance can collaborate with law enforcement authorities to expose confidential information about cryptocurrency exchanges. As emphasized by the former senior official of the SEC, law enforcement agencies and other authorities often view former senior employees of a company under investigation as important sources of information and seek to enter into secret agreements with them.
Like in the case of Binance, terminated or voluntarily departed top executives can have insider knowledge about the targeted company and provide information to prosecutors about behaviors that violate laws and involve criminal transactions. Stark also added that former Binance employees are dissatisfied or shocked due to ongoing lawsuits and investigations.
Can the SEC Obtain Information from Former Binance Employees?
Although neither the SEC nor the US Department of Justice (DoJ) requested media to reach out to former top executives of Binance for comments on the events, Stark’s claims of their dissatisfaction or shock were denied. Furthermore, a Binance spokesperson made a statement that periodic changes are made in the management level.
Just in the last 10 days, Binance’s Asia-Pacific President Leon Foong, Global Product President Mayur Kamat, Deputy President of Eastern Europe Gleb Kostarev, and Commonwealth of Independent States (CIS) Director Vladimir Smerkis announced their resignations, parting ways with the cryptocurrency exchange.
