Crypto

Binance Sets up First-Ever Board in Wake of Legal Settlements

Binance Holdings, operator of a crypto exchange of the same name, has established its first board of directors. The announcement comes as the company seeks to navigate through the aftermath of legal challenges in the United States, including a guilty plea to violations related to anti-money laundering and sanctions.

The board will be led by Gabriel Abed, previously Barbados’ ambassador to the UAE, starting 7th March. Alongside Abed, the board includes Binance CEO Richard Teng and early company associates Heina Chen, Jinkai He, and Lilai Wang. Completing the lineup are Arnaud Ventura, of Gojo & Co., and Xin Wang, CEO of Bayview Acquisition Corp.

The formation of this seven-member board marks a major shift for Binance, especially in the wake of a US$4.3 billion settlement with US authorities earlier this year.

The move is part of a broader strategy by CEO Richard Teng, who assumed his role in November, to steer the company towards a more traditional corporate structure.

Teng has expressed an interest in adopting a traditional corporate framework which entails a functional board of directors as well as establishing a clear global headquarters, despite his refusal to disclose the location of Binance’s headquarters last year.

This leadership restructure is in line with Binance’s efforts to comply with regulatory standards following its legal settlement in the US. Binance’s founder, Changpeng Zhao, also faced charges, with his sentencing scheduled for later in April.

Austin Campbell, a consultant for blockchain firms and adjunct professor at Columbia Business School, commented on the board’s composition saying that a preference for internal figures could limit external influence over governance. However, he acknowledged this as a step forward for Binance, indicating a new direction for the company.

Featured image credit: Edited from Freepik