Richard Teng Pledges Compliance Reform as Binance’s New CEOby Fintech News Singapore November 28, 2023
Changpeng Zhao (CZ), the founder and former CEO of Binance, currently faces restrictions on leaving the United States, according to a recent report by CoinDesk.
This development follows a federal judge’s decision to temporarily suspend part of his bond release, initially allowing him to return to the United Arab Emirates, where his family resides.
CZ, who pleaded guilty to criminal charges for anti-money laundering and violations of U.S. sanctions, has resigned as CEO of Binance.
The company agreed to pay US$3.4 billion to FinCEN and US$968 million to OFAC, representing the largest penalties in the history of these U.S. regulatory bodies, as well as the implementation of compliance monitors.
CZ’s release was initially set at a US$175 million bond. Despite meeting these conditions, the U.S. Department of Justice raised concerns about him being a flight risk as well as the fact that the UAE has no extradition treaty with the U.S., leading to the judge’s decision to reconsider his ability to leave the country.
His legal team emphasised his commitment to facing the charges, noting the impracticality of relocating his family just for sentencing.
Amidst these circumstances, Binance’s new CEO Richard Teng who succeeds CZ, has shared his perspective in his first blog after taking up the new post.
He spoke of leading the company with an emphasis on innovation and user value, acknowledging the need for a responsible approach to growth and compliance.
“We have turned the page on Binance’s historical challenges and we are, in fact, stronger today than we have ever been.
Over the course of the past two years, Binance has systematically worked to address its past compliance issues through a series of significant efforts to recruit, hire, and retain the right personnel to strengthen Binance’s compliance program and culture,”
Teng said in the post.
He also underlined the importance of regulatory collaboration for the future of the crypto industry. Despite the reassurances by CZ and Teng, the crypto exchange’s woes may be far from over as it still faces fraud allegations by the U.S. regulators.
The Wall Street Journal revealed that the U.S. SEC is still looking for evidence that Binance and CZ may have had a backdoor to control assets stored on the Binance.US platform, calling it a “FTX-style fraud”.