Ripple CLO Alderoty praises Binance’s resolution with the Department of Justice, here’s why

As previously reported, Binance creator and CEO Changpeng Zhao (widely known in the community as CZ) will step down from his leadership role, and Richard Teng, former global head of regional markets, will replace CZ.

The resignation is part of the agreement reached with the US Department of Justice (DoJ), as well as a fine of $4.3 billion to resolve criminal charges for money laundering violations, allowing US VIP clients. The US will remain on Binance, while it officially withdraws from the country.

Many notable figures in the crypto space have commented on CZ’s decision to resign, including his friend Justin Sun, founder of Tron and now owner of exchanges Poloniex and Huobi, the CTO of Ripple and others. Now, Ripple Chief Legal Officer Stuart Alderoty also posted a tweet about this, emphasizing the importance of Binance’s resolution with the Department of Justice for the entire crypto space.

Here is Alderoty’s take on what happened to Binance

Ripple’s CLO tweeted that what Binance did was a “necessary step” as it brought the crypto space into compliance with “these important laws and safeguards,” i.e. financial regulators. He mentioned that in the past, at some point, big banks went through a similar procedure.

What’s also important, according to Alderoty, is that the Justice Department did not allege that Binance violated any securities laws and did not even suggest that any of the tokens it traded were unregistered securities, unlike what the SEC did this year. with Coinbase and Kraken exchanges. .

Alderoty added that the US Treasury and the Commodity Futures Trading Commission (CFTC) also joined the Department of Justice in dealing with Binance and the charges. Notably, the SEC did not join them. Ripple’s top executive saw a clear message here that the agency, under Gensler, has not only become an outlier globally, but also within its own government.

Comparing the SEC to a “petulant child who can’t stand being ignored,” Alderoty said the SEC tweeted about its lawsuit against Kraken at exactly the same time the Justice Department scheduled its conference to deal with Binance.

As for the SEC’s allegations against Kraken about trading in “unregistered securities,” Alderoty said it “makes no sense under the law” as the Department of Justice did not throw this charge at Binance.

“The courts have been very clear that tokens themselves are not securities,” Alderoty stressed in his tweet.

CZ makes important statement after resigning from Binance

CZ posted a tweet to inform the community of his resignation and share what he plans to do once his leadership role at Binance ends.

CZ admitted that the decision to resign was not easy for him, but he did so to take responsibility for his mistakes. “This is the best for our community, for Binance,” he believes. As for Binance, “Binance is no longer a baby. It’s time for me to let it walk and run. I know Binance will continue to grow and excel with the deep bench that it has,” CZ said.

It then appointed Richard Teng as the new CEO, saying he has extensive experience of more than 30 years in the financial and regulatory industry. With it, CZ hopes that Binance will go through a new period of growth.

CZ stated that he is a Binance shareholder and will continue to assist the company’s team as a consultant “in accordance with the framework established in the resolutions of our US agency.”

Upon leaving Binance, CZ does not plan to start a new company, as he sees himself as “a (lucky) one-time entrepreneur.” However, he is willing to become a coach/mentor to a small number of novice entrepreneurs, privately.

CZ also made an important statement regarding the resolution between Binance and the DoJ. It leaves the company with the Department of Justice without alleging that Binance misappropriated user funds and without alleging that Binance was involved in market manipulation activities.