Binance Discreetly Spins off Venture Arm Months After Richard Teng Steps up as CEO
by Fintech News Singapore March 18, 2024Global crypto exchange Binance has officially spun off its venture capital and incubation arm – Binance Labs, as reported by The Block.
Binance Labs, now standing independently, has adjusted its operational dynamics, ensuring that its staff contracts and organisational structure are distinctly separate from those of the crypto exchange. This model mirrors the operational setup of the Binance-supported BNB Chain project.
As per the disclaimer now present on its site, “Binance Labs is an independent venture and not part of the Binance Group nor is it involved in any of the businesses operated by the Binance Group.”
This change indicates that while Binance Labs will continue to operate under the Binance brand, it has no direct ties with the group’s operations.
Yi He, another co-founder of Binance, leads Binance Labs, which has made significant investments in the cryptocurrency sector since its inception in 2018.
Having backed more than 200 projects, including notable names like Aptos Labs, Polygon, and The Sandbox, Binance Labs has assets valued at over US$10 billion, primarily funded through profits generated by the crypto exchange.
The shift comes on the heels of increased scrutiny faced by Binance, especially after agreeing to a hefty settlement of US$4.3 billion with U.S. regulators last November.
Following the settlement, Binance witnessed a major leadership transition, with co-founder Changpeng Zhao stepping down as CEO, succeeded by Richard Teng in November 2023.
