There has been a major shift in leadership at the head of the cryptocurrency exchange following Binance Holdings' $4.3 billion settlement with the US DOJ.
After co-founder Changpeng "CZ" Zhao departed, Richard Teng was named CEO. Bloomberg reports that Teng has pledged to keep the core staff together.
The Core Team of Binance Remains Unaffected by the Change in Leadership
Following CZ Zhao's forced resignation as part of the DOJ deal, Richard Teng took over as CEO of Binance. Teng emphasized the significance of Binance's core staff by confirming that it is still together.
Teng wants to keep things running smoothly throughout the leadership change, so he made this promise to allay fears about any interruptions, according to the story.
The DOJ deal was a watershed moment in the exchange's fight against regulatory worries. The business and its co-founder both took responsibility for transgressions including sanctions and anti-money laundering (AML).
Cryptoist said that CZ may spend up to 18 months behind bars and is barred from having any official engagement with Binance for the next three years as a result of the plea deal. Nonetheless, Zhao will maintain a large portion of the company's ownership.
Furthermore, the exchange has lost a number of senior-level officials this year, including the chief strategy officer and other important executives from its Asia-Pacific business.
The decisions that Richard Teng must make about the establishment of a board of directors and the choice of a formal headquarters for Binance will determine the course that the exchange takes in the future.
Although Teng refrained from giving Bloomberg any concrete information on these procedures, he did promise that the business will make announcements when the time was right. Furthermore, we have not yet chosen a financial auditor.
Despite the lack of disclosure, Teng stressed that Binance's financing structure is debt-free and that the company's sales and profitability are strong.
Binance is currently embroiled in a solo litigation with the US Securities and Exchange Commission (SEC), even if it reached a settlement with the DOJ. Binance will be subject to an independent compliance monitor's examination for the following three years and will be required to submit reports to the US government as part of the settlement.
A $620 million legal showdown between Genesis and DCG has finally come to a close.
In the end, Binance's leadership transfer, which was caused by the deal with the DOJ, has put Richard Teng in charge of the cryptocurrency exchange at a crucial juncture.
Teng's dedication to guiding Binance through the next obstacles is evident in his focus on preserving stability among the core team.
Restoring trust and openness will be vital for Binance's long-term success as the firm strives to improve regulatory compliance, choose a headquarters, and resolve the SEC litigation.