In a statement on X, Jesse Powell, co-founder of Kraken, expressed his satisfaction with the results of the investigation into Binance. He highlighted the importance of visionaries and shareholders with a long-term focus in the world of cryptocurrencies.
Over the past 12 months, leaders of prominent crypto exchanges such as FTX and Binance have faced federal scrutiny from US government agencies. The allegations range from embezzlement of investor funds to evasion of anti-money laundering (AML) regulations.
Powell considers the legal proceedings against Binance and its former CEO, Changpeng “CZ” Zhao, positive. He claims that pursuing offenders abroad would require considerable effort and highlights that companies such as Kraken, Coinbase and US-based Ripple are more accessible targets.
“The game seems a little fairer today. The last 12 months have answered two lingering questions from shareholders: 1. How are they going so fast? 2. How are they getting away with it? ‘Trust me, any day of these…’ is only believable for so many years. It is difficult to keep faith while…”
Powell, referencing CZ’s recent admission of Binance violating AML requirements, underscored the need for self-policing to improve the industry’s reputation:
“Every dubious transaction represents an opportunity for governments to scapegoat cryptocurrencies and tighten the noose.”
Furthermore, he urged the community to cooperate to restore the image of the crypto ecosystem, recommending reliable services that “play the long game.” Powell also backed the idea of a Know Your Customer (KYC) requirement, as long as it helps legally bring new users into the crypto space.
(Referential image source: Kanchanara, Unsplash)