New Binance CEO Acknowledges Compliance Issues in First Interview
Richard Teng, the newly appointed CEO of Binance, faced a challenging debut during his first public interview. Speaking at the Financial Times’ Crypto and Digital Assets Summit in London, Teng admitted that Binance’s compliance systems had been inadequate in the past and acknowledged making mistakes. However, he evaded direct answers about the company’s governance, frustrating the interviewer.
“I’ve asked you where Binance’s global headquarters is, I’ve asked you whether Binance is going to undergo an audit, how many employees the company currently has on its books and whether you’re applying for a license in the UK… You haven’t answered those questions.”
Teng insisted that he had answered each question but failed to provide clear responses. When asked about Binance’s headquarters, he responded with “It is under consideration.” He also remained vague about the future of Binance and the changes under new leadership.
Teng Succeeds CZ Following DOJ Settlement
Teng became CEO after succeeding Changpeng “CZ” Zhao following Binance’s settlement with the US Department of Justice. The exchange had faced accusations of violating sanctions and money-transmitting laws. In his interview, Teng admitted mistakes were made and acknowledged the inadequacy of Binance’s compliance control given its size. He stated that going forward, the exchange aims to be both “user-led” and “compliance-led.” When asked about an audit, Teng claimed that as a private company, Binance is not obligated to disclose such information.
Teng has hinted at the exchange’s ability to pay the $4.3 billion fine imposed by the US Justice Department. He stated that the exchange is financially sound and capable of paying the fine without selling any crypto assets.
Hot Take: New Binance CEO Faces Challenges and Avoids Transparency
Richard Teng, the newly appointed CEO of Binance, encountered difficulties during his first public interview. While he admitted to past compliance issues and mistakes, Teng evaded direct answers about Binance’s governance and future plans. This lack of transparency frustrated the interviewer and raised concerns about the company’s operations. Additionally, Teng’s vague responses regarding Binance’s headquarters and the possibility of an audit added to the uncertainty.
However, Teng did acknowledge the need for improved compliance control and expressed a commitment to making Binance both “user-led” and “compliance-led.” The appointment of Teng as CEO comes after Binance settled with the US Department of Justice for violating sanctions and money-transmitting laws. Despite these challenges, Teng has indicated that Binance is financially stable and capable of paying its substantial fine without selling any crypto assets.