Binance CEO Richard Teng: A Completely Different Company
In an interview with Cointelegraph, new Binance CEO Richard Teng emphasized that the company has undergone significant changes in recent weeks. Following a $4.3 billion settlement with U.S. authorities over compliance violations, Teng took over as CEO on November 21, replacing founder Changpeng “CZ” Zhao.
Teng expressed optimism about leading Binance through ongoing regulatory challenges and working closely with global regulators to push ahead with the company’s growth agenda.
Early Compliance Gaps Led to $4.3 Billion Settlement
Teng acknowledged that mistakes made during Binance’s early years resulted in the massive settlement with U.S. authorities. Compliance gaps during the period of rapid growth led to violations of regulations and sanctions programs. However, Teng maintained that there were no allegations of misappropriation of user funds and that customer assets were always secure.
Ongoing Obligations Under Settlement With DOJ
As part of the $4.3 billion settlement, Binance is facing a five-year monitorship and must completely exit the United States. Teng did not provide specific details about Binance’s legal battle with the SEC but stated that the costs of the settlement and SEC case have been factored in.
Is Binance Being Singled Out?
Teng avoided speculating on whether Binance was singled out, but acknowledged that large fines are common in the financial sector. He emphasized that Binance may become the most regulated exchange globally with operations in 18 jurisdictions.
Richard Teng Stepping Into the Founder’s Shoes
Teng admitted he cannot directly replace CZ as an inspirational leader focused on execution. However, he believes his financial background can help steer Binance into a new era. Teng will report to a board of directors as the company transitions away from CZ’s influence.
Hot Take: Binance’s Transformation Towards Compliance
Under the leadership of CEO Richard Teng, Binance is striving to become a compliant and regulated exchange after a significant settlement with U.S. authorities. With a change in leadership and a focus on working closely with regulators, Binance aims to reshape its future. Despite ongoing legal battles, Teng remains optimistic about the company’s growth agenda and its ability to adapt to regulatory challenges.
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