Former Ripple director Sean McBride provided insight into the 2019 rejection of Gary Gensler’s application to become an advisor at Binance.
Sean McBride, a former director of Ripple, recently disclosed a shocking fact concerning Gary Gensler and the leading cryptocurrency exchange, Binance. According to reports, Gensler was to serve as Binance’s advisor; however, unforeseen circumstances altered that course of action.
The former Ripple director disclosed that he obtained this shocking information through a conversation with an acquaintance employed at Binance.
The Binance employee disclosed that the exchange declined Gary Gensler’s advisory role in 2019. He cited concerns regarding his affiliations with FTX and its founder, Sam Bankman-Fried, as the reason for his departure.
Gensler subsequently assumed the role of chairman of the Securities and Exchange Commission (SEC), illuminating his unsuccessful attempt to join the largest cryptocurrency exchange, as revealed in the statement of the former Ripple executive. It should be noted, however, that Binance’s 2019 decision could not have been influenced by the FTX collapse, as that occurred much later.
One plausible explanation is that Binance regarded FTX as a competitor and prohibited Gensler’s access. Nonetheless, the leading cryptocurrency exchange had invested in FTX at its inception; therefore, this theory appears implausible.
Conversely, Binance might have been informed of the dubious activities of FTX and its proprietor, Sam Bankman-Fried, which prompted the cryptocurrency exchange to refute Gensler’s employment as their advisor
Additionally, Reuters reported that banks expressed concerns regarding the wire activity of Alameda Research, a sister company of FTX, in 2020.
As FTX struggled to integrate into the U.S. banking system, several financial institutions declined to facilitate wire transfers to and from Alameda. This indicates that before the FTX collapse, several entities affiliated with the cryptocurrency exchange were cognizant of the situation.
