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Binance CEO says company has moved past cultural issues
Binance's new CEO Richard Teng said the company has moved past cultural issues after the company was hit with a $4.3 billion fine to settle charges from the U.S. Justice Department.
The DOJ had alleged Binance practised a move first, ask forgiveness later approach. Teng on Tuesday acknowledged the concerns.
"In those very early stage of development — again, where rules are nascent [and in the] early stage of development, there's no clarity on that — Binance was operating in a certain fashion," Arjun Kharpal on Tuesday at the Paris Blockchain Week crypto conference in Paris, France.
"But we have moved past that as the company move into greater maturity," Teng said, adding: "We are looking at sustainability; the direction of travel is very clear towards much more compliance, which is why we're building up a very robust compliance program."
In November, Binance agreed to pay a$4.3 billion settlement to the U.S. government, including a forfeiture of $2.5 billion and a fine of $1.8 billion.
Former Binance CEO Changpeng Zhao was charged with violating the Bank Secrecy Actand agreed to step down.
Binance CEO Richard Teng at the Paris Blockchain Week summit in Paris, France, on Tuesday, April 9, 2024.
Bloomberg | Bloomberg | Getty Images
The plea deals ended a years-long investigation into the crypto exchange. Zhao's sentencing was postponed until April 30, according to a February notice in a Seattle federal court.
In its November settlement with Binance, the DOJ said that former CEO Zhao had "told employees it was 'better to ask for forgiveness than permission,' and prioritized Binance's growth over compliance with U.S. law."
U.S. authorities also accused Binance of allowing transactions between U.S. users and users in jurisdictions that were subject to U.S. sanctions.
"These illegal transactions were a clear and foreseeable result of Zhao's decision to prioritize Binance's profit and growth over compliance with the BSA," the Justice Department said, referring to the Bank Secrecy Act.
Last week, Binance named its first board of directors in an effort to satisfy the concerns of U.S. regulators.
While the board added some non-executive directors, it still primarily comprises company insiders, including Teng.
Asked about Binance's decision to appoint mostly company insiders to the board, Teng said it was important to ensure that the talent driving the Binance business going forward was "unique" to address its corporate needs.
"It's a good mix of internal inputs, as well as external [ones], on how to bring this company forward as corporate stewards," Teng said, adding that the current board makeup was focused on making the appropriate tech enhancements and product enhancements to head toward a "robust sustainable business."
Still undecided on global HQ
Binance has yet to decide on an official global headquarters, but Teng said the firm has a few options in mind. The search requires a "very deliberate process" to ensure it hits all the right notes, he added.
"It's not an easy decision, there are a lot of considerations as you can imagine [including] whether the jurisdiction has the regulatory framework to cater to the breadth and depth of our products, that can cater to our users …[and] whether we can base more people there as part of our corporate headquarters."
Binance has long been searching for a central hub to establish its operations, in order to allay regulator concerns about its approach to compliance.
Previously, the company suggested it could choose Paris as the location of its global HQ.
"There are various considerations at play that we need to look at seriously, and we're going through a very deliberate process," Teng told CNBC. "We're going to see a corporate headquarters like we see for other corporate institution and that's the journey we have to go on."
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Binance's new CEO Richard Teng said the company has moved past cultural issues after the company was hit with a $4.3 billion fine to settle charges from the U.S. Justice Department. The DOJ had alleged Binance practised a move first, ask forgiveness later approach. Teng on Tuesday acknowledged the concerns.
Is the CEO of Binance found guilty? ›
Changpeng Zhao, the former chief executive of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating US money-laundering laws at the world's largest cryptocurrency exchange.
Will Binance CEO go to jail? ›
NEW YORK, April 24 (Reuters) - U.S. prosecutors want Changpeng Zhao, the founder and former chief executive of Binance, the world's largest cryptocurrency exchange, to serve three years in prison after he pleaded guilty to violating laws against money laundering.
Why did CZ plead guilty? ›
“Because Changpeng Zhao knowingly operated a financial platform without basic anti-money laundering safeguards, the company caused illegal transactions between U.S. users and users in sanctioned jurisdictions such as Iran, Cuba, Syria, and Russian-occupied regions of Ukraine – transactions for which Binance profited ...
What did Binance CEO do? ›
Zhao, 47, pleaded guilty in November to one count of failing to maintain an anti-money-laundering program. Binance agreed to pay $4.3 billion to settle related allegations from the U.S. government. “I failed here,” Zhao told the court Tuesday. “I deeply regret my failure, and I am sorry.”
Who is the richest person in Binance? ›
Zhao, who founded Binance in 2017, will begin his sentence with a personal fortune estimated at $43 billion, which would make him the richest person to ever be incarcerated.
What are the legal issues with Binance CEO? ›
He pleaded guilty to violating US anti-money laundering laws and agreed to step down as Binance CEO, the authorities announcing later that the firm would pay a $4.3 billion settlement. The legal cases painted a picture of Zhao as a ruthless operator pursuing growth at all costs.
Does Binance hold your money? ›
How long can Binance hold your money? All new ACH, Debit, and Apple Pay deposits are subject to a brief withdrawal lock period. During this lock users cannot withdraw USD or Crypto funded by these deposits for the following time periods: Debit: 7 days withdrawal lock. ACH: 7 days withdrawal lock.
Where does Binance CEO live? ›
A federal judge last month rejected a request by Binance founder Changpeng “CZ” Zhao to travel to his home in the United Arab Emirates for the “hospitalization and surgery” of a person in his life even though he offered to post his Binance equity as security for his return to the U.S., a new court filing reveals.
Who is the CEO of Binance full name? ›
Changpeng Zhao, founder of Binance, the world's largest cryptocurrency exchange, has been sentenced to four months in prison. Judge Richard Jones, who presided over the sentencing hearing in the Western District of Washington on Tuesday, handed down a lighter sentence than the three years petitioned by the prosecution.
The SEC had sued Binance, its CEO and founder Changpeng Zhao, and Binance. US's operation in June, alleging in 13 charges that Binance had engaged in a "web of deception," artificially inflated trading volumes and diverted customer funds.
What is the Binance controversy? ›
According to U.S. Attorney General Merrick Garland, Binance broke American law and made it simple for thieves to transfer money that had been pilfered or illegally obtained. According to the indictment, Binance violated sanctions by facilitating more than 1.1 million transactions between Americans and Iranians.
What are the criminal charges against Binance? ›
On November 21, 2023, the Department of Justice announced that Binance Holdings Limited (Binance) pleaded guilty to conspiracy to violate the Bank Secrecy Act (BSA) and to fail to register as a money transmitting business, failure to register as a money transmitting business, and violating the International Emergency ...
How much is the owner of Binance worth? ›
Changpeng Zhao, known as "CZ," founded Binance, which rapidly grew to be the largest cryptocurrency exchange in the world by daily trading volume. With a net worth estimated at $39.6 billion as of March 2024, Zhao's story reflects the fast-paced and unpredictable world of cryptocurrency.
Who is the father of Binance? ›
Binance was founded in 2017 by Changpeng Zhao, a developer who had previously created high-frequency trading software. Binance was initially based in China, then moved to Japan shortly before the Chinese government restricted cryptocurrency companies.
Who is Bybit owned by? ›
Ben Zhou is the Co-Founder and CEO at.
Where is Changpeng Zhao now? ›
On Tuesday, a judge in Seattle federal court sentenced Zhao to four months in prison as part of a plea deal—but the multibillionaire will still retain most of his wealth.
Who is the current CEO of Binance? ›
The current CEO of Binance is Richard Teng. He took over the position from Changpeng Zhao (CZ) on November 21, 2023, after CZ stepped down as part of a $4.3 billion settlement with the U.S. Department of Justice.
Who is the custody partner of Binance? ›
Binance describes Ceffu as the “only institutional custody partner of the Binance Exchange” on its website.
