Kraken Co-founder Lauds DOJ’s Crackdown on CZ And Binance

Jess Powell hails the DOJ’s enforcement actions against Binance and its ex-CEO, calls for better justice tactics from the SEC.

Jesse Powell smiling in front of a Kraken graffiti.
Created by Gabor Kovacs from DailyCoin
  • The co-founder of cryptocurrency exchange Kraken has hailed the DOJ for the crackdown on Binance.
  • The Securities and Exchange Commission recently filed a lawsuit against Kraken.
  • The now-former CEO of Binance is still in a legal dispute with the DOJ.

The cryptocurrency industry has come under heightened scrutiny by global financial watchdogs, and exchanges are feeling the heat like never before. The recent DOJ-Binance Settlement has rippled through the crypto community, triggering reactions and opinions from investors and experts alike.

Joining the discourse, the Kraken co-founder offered his insights on the criminal crackdown and the broader industry justice system. 

“The Game Feels A Bit More Fair Today”

On Thursday, November 23, co-founder of cryptocurrency exchange Kraken, Jesse Powell, took to social media platform 𝕏 (formerly Twitter) with opinions on the debacle involving Binance, its ex-CEO Changpeng “CZ” Zhao, and the U.S. Department of Justice.

Powell asserts that the eventual criminal crackdown on Binance has answered the lingering questions of the exchange’s activities, and how it has charged its way up to becoming a big-shot cryptocurrency exchange.

Underlining his perceived deficiencies in Binance’s actions, Powell emphasized that the no-KYC practice on the exchange is an unsustainable position for any significant exchange operating within the industry.

When asked about the ongoing Kraken-SEC tussle, Powell criticized the enforcement tactics employed by the regulatory commission, emphasizing that it has been going after the “easy targets”.

Powell Condemns the SEC’s Crypto Justice System

Twice this year, the SEC has targeted Kraken with lawsuits, alleging the unregistered offer & sale of securities through its platform. 

Powell asserts that the commission has neglected the notable wrongdoers within the industry, with a disproportionate focus of its efforts towards the “good” smaller-scale entities.

His criticism extended to the SEC’s overreach against Ripple and Coinbase, emphasizing that the commission’s prioritization of legal actions based on convenience rather than the severity of offenses defies its claims of protecting the people.

Powell encouraged investors to join in the quest against industry injustice by onboarding to services that are engaged in these fights to contribute to the longevity of the ecosystem. 

On the Flipside

  • While some investors share Powell’s views, others characterize the DOJ’s actions against Binance and CZ as oppressive, asserting that it is a part of the government’s effort to control the industry.   
  • Changpeng “CZ” Zhao, the indicted and now-former CEO of Binance is still involved in a legal dispute with the Department of Justice and is scheduled for a court appearance in February 2024.
  • Binance still faces lawsuits with the Securities and Exchange Commission.

Why This Matters

The endorsement of the DOJ’s crackdown on Binance by Jesse Powell adds weight to the already delicate situation for Binance, highlighting the growing sentiment among investors that accountability is essential for the industry’s long-term health. 

Ex-Binance CEO Changpeng “CZ” Zhao exits the exchange as mandated by the DOJ’s settlement deal:
“Binance Will Be Fine”, CZ Pens Final Note to Staff as CEO 

To dive deeper into DOJ’s crackdown on Binance the former CEO’s guilty plea, read here:
CZ Steps Down As Binance CEO As Exchange Pleads Guilty 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.