Richard Teng to Speak
A source close to the company told The Block that Richard Teng, CEO of the world’s largest crypto exchange, will be speaking at 9 p.m. Hong Kong time on Wednesday.
Pleading Guilty
Earlier today, Teng pleaded guilty to violating the Bank Secrecy Act and resigned as the CEO of the crypto exchange. As part of the plea deal, Teng agreed to pay a $50 million fine, while the company will pay a $4.3 billion fine for violating money transmission laws and U.S. sanctions. Teng will also pay a $175 million personal recognizance bond and must appear in court in Seattle on February 23 next year for sentence hearings.
Despite the blow to its business in the U.S., the company has communicated its vision for the future and acknowledged the need for improved compliance controls.
Increase in Withdrawals
The world’s largest crypto exchange saw a significant increase in withdrawals today, with data from DefiLlama showing that Binance’s 24-hour outflows topped $1 billion as of 3:30 p.m. Hong Kong time on Wednesday. The exchange’s net outflows over 7 days amounted to $703.1 million.
Hot Take
Despite the challenges faced by the world’s largest crypto exchange, the resignation of the CEO and the company’s plans for the future indicate a willingness to address compliance issues and work towards a more stable business model. The increased withdrawals suggest that users may be reacting to the recent developments by moving their assets out of the exchange.
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