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Richard Teng

Binance Ban Zhao From Leadership But Influence Remains

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In a shocking twist, Binance has officially barred its former CEO Changpeng Zhao from taking over the company’s reins in the future. However, Richard Teng, the exchange’s current CEO confirmed that Zhao will still maintain his position as the company’s largest shareholder.

Since Zhao’s resignation and conviction, there has been speculation regarding his future role in the firm. The ambiguity deepened after Binance’s plea agreement with the Department of Justice in November, While the agreement initially stated that he would be barred from “managing or operating” the company, it didn’t explicitly specify the duration of this ban.

Teng’s recent statement has finally put an end to all the rumors. This indicates that even after Zhao completes his prison sentence on September 29, he will be prohibited from holding executive or operational roles within Binance. Despite that, Zhao will maintain significant influence over the company’s affairs.

As the majority shareholder, he will retain all shareholder rights, including the power to replace board members or even the CEO if he deems it necessary. Even though, he may not be directly involved in day-to-day operations, his ability to shape the company’s direction through his shareholder rights could prove to be a major factor.

Binance: Compliance at the Forefront

Moreover, as per the DOJ’s settlement with Binance two external monitors were appointed to oversee the company’s compliance with the agreement. These monitors will play a crucial role in ensuring that Zhao’s activities do not conflict with the terms of the ban and that Binance operates transparently and lawfully.

As part of its invеstmеnt in compliаncе, the crypto trading platform is sеt to onboard 1,000 nеw еmployееs by thе еnd of 2024. CEO Richаrd Tеng rеvеаlеd thаt mаny of thеsе nеw hirеs will bе аllocаtеd to thе compliаncе dеpаrtmеnt, which will grow from 500 to 700 mеmbеrs.

Furthermore, the firm also plаns to spend ovеr $200 million this year to mееt rеgulаtory rеquirеmеnts. This budgеt includеs еxpеnsеs rеlаtеd to а 2023 аgrееmеnt with thе U.S. Dеpаrtmеnt of Justicе, аddrеssing concеrns аbout monеy lаundеring on thе plаtform.

Binance CEO Demands U.S. Action Over Detained Ex-Agent in Nigeria

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The CEO of Binance, Richard Teng, has lashed out in fury towards the Nigerian government as it continued to detain Tigran Gambaryan, a former U.S. federal agent and an employee of Binance. Gambaryan has been held in Nigeria for six months, with continued failing health due to lack of medical care and legal representation.

According to the blog post, Teng’s declaration indicates the high physical and mental stress on Gambaryan, who is reported to be in the state of having a herniated disc that has made him unable to walk.

He is in critical condition, and yet the Nigerian authorities have not provided him with the medical services that are essential to him, such as a wheelchair, and have not allowed him to seek legal counsel before the trial that is scheduled to begin on September 2.

Moreover, a Nigerian court ordered the release of Gambaryan’s medical records, but compliance was delayed for months. This week, the situation was compounded as Gambaryan was refused access to a U.S. consulate representative, which further increased the worries about his health.

Binance Calls for U.S. Government Intervention

Binance has called on the U.S. government to intervene and apply political pressure to secure Gambaryan’s release. Teng expressed deep concern for the irreversible damage that continued detention could cause to Gambaryan’s health and urged for a humanitarian resolution that would allow him to return to the U.S. for proper treatment and recovery.

The Nigerian government has justified Gambaryan’s continued detention with the allegations that Binance, being a primarily virtual corporate entity, is a scapegoat for human rights violations.

The prosecution’s counsel argued that Gambaryan should be denied bail due to concerns over him being a flight risk. Binance refutes this claim, claiming it is baseless. The company relies on the fact that it has settled regulatory matters in several countries, including the U.S., Thailand, Brazil, and India, without resorting to punitive measures against its employees.

Teng urges the U.S. government to officially regard Gambaryan as unlawfully detained and use its influence to get him released. He asks international observers to raise their voices and make the Nigerian authorities address what he considers an unfair and harmful situation.

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Binance Bolsters Compliance Efforts With A 35% Budget Surge: Report

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Binance, the world’s largest crypto exchange, has revealed a substantial year-over-year increase in its spending on compliance measures, according to a recent report. The company has escalated its budget from $158 million to $213 million, signaling a 35% surge, as it invests in cutting-edge software systems designed to identify and report suspicious transactions.

This move comes as Binance braces for the monitoring process and the impending sentencing of its former CEO, Changpeng Zhao. The increased compliance expenditure encompasses not only the acquisition of advanced software but also includes personnel costs. Notably, the exchange has brought back executive Steve Christie, appointing him as Deputy Chief Compliance Officer.

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Binance’s CEO, Richard Teng, emphasized the transformation of their compliance culture, attributing the progress to the caliber of talent within the organization. Teng, who assumed the CEO role in November, is a former regulator, steering the company towards a more robust compliance framework.

This strategic focus on compliance marks a significant shift for Binance, considering its earlier laissez-faire approach that contributed to its dominance in the industry. Last year, the exchange reached a settlement with U.S. authorities, ending various investigations.

As part of the settlement terms, the exchange is obliged to accept a court-appointed monitor. The monitor, yet to be officially appointed, will ensure adherence to terms stipulated by the Department of Justice, the Financial Crimes Enforcement Network, and the Office of Foreign Assets Control – all divisions of the U.S. Treasury.

Binance Financial Resilience Amidst Challenges

The impending monitor appointment is expected to curb any questionable tactics that may have contributed to Binance’s market share growth in the past. Despite these challenges, the exchange reported impressive financial figures for January, pulling in over $3.5 billion in new funds and boasting total assets on the platform exceeding $80 billion.

Steve Christie, the returning executive, expressed confidence in the exchange’s strengthened compliance culture. He highlighted the unparalleled technological arsenal at the company’s disposal for compliance, due diligence, and transaction monitoring. Christie’s return to Binance follows a personal break with his family.

Christie said:

The amount of tech Binance has for compliance, due diligence, and transaction monitoring is unparalleled. There’s more tech at your fingertips than anywhere I’ve worked.

However, Binance seems poised to navigate the challenges ahead as the crypto industry undergoes regulatory transformations, bolstered by increased compliance measures and a strong leadership team.

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Binance 2023: A Year Of Surging Users & $213M In Compliance

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As the curtains draw on 2023, Binance, one of the cryptocurrency industry’s giants, released its annual report, revealing remarkable achievements and strategic pivots that shaped its trajectory throughout the year. With a 40 million new users surge, the platform now boasts a staggering 170 million registered users, signaling a robust 30% increase since the previous year.

In a tumultuous year for the crypto market, the exchange stood resilient, navigating through market fluctuations and tightening regulations across various jurisdictions. The report highlights the company’s commitment to compliance, disclosing an impressive $213 million investment in its compliance program—an increase of 35% compared to the previous year’s spending.

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The compliance initiative is not merely about monetary investments. Binance has dedicated substantial product and engineering resources to fortify its compliance framework. The company introduced its proprietary case management system, an internal transaction monitoring engine, and in-house tools designed to semi-automate investigations. Enhanced market surveillance controls, particularly around wash or circular trading, have been implemented across Binance’s trading platforms, including the NFT marketplace, ensuring fairness for all participants.

Binance’s compliance efforts extend globally, with licenses, registrations, and authorizations secured in 18 jurisdictions—a testament to its commitment to meeting the highest regulatory standards. The company has invested in top-tier localized KYC vendors and product solutions to create a seamless onboarding experience for users worldwide. To enhance user experience, Binance supported 298 new ID and proof-of-address documents across 64 countries in the past year alone.

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Binance’s Leadership Shift

Meanwhile, the exchange underwent a comprehensive third-party assessment, culminating in completing the System and Organization Controls (SOC) 2 Type II compliance audit in December 2023. Earlier in the year, the platform received ISO 27001 and ISO 27701 certifications for information security governance and privacy information management in four jurisdictions.

A pivotal moment in Binance’s history unfolded with the resignation of co-founder and former CEO Changpeng Zhao (CZ). Richard Teng, a seasoned financial regulator and business executive, succeeded CZ, marking the start of a new chapter. In response to regulatory scrutiny, the exchange has agreed to hire an independent anti-money laundering consultant and will undergo a multi-year financial monitorship.

The report underscores Binance’s unwavering dedication to user trust and financial transparency. With a robust compliance program, strategic investments in cutting-edge technologies like zero-knowledge proof cryptography, and a focus on Web3 games and DeFi innovation, Binance is poised for continued success in the dynamic world of cryptocurrency.

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Binance CEO Teases Grand Prix Partnership

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In the wake of assuming the role of Binance’s new CEO, Richard Teng has swiftly sprung into action, echoing the proactive approach of his predecessor. Teng, currently in Abu Dhabi for the Formula 1 Grand Prix, has shared a photo featuring himself alongside mixed martial arts champion Khabib Nurmagomedov and football icon Ronaldo “Fenomeno.” This rendezvous has sparked speculation about potential collaborations on the horizon.

Binance has seized the opportunity presented by the Formula 1 Grand Prix in Abu Dhabi to make a grand entrance showcasing a colossal helmet balloon lifted by two helicopters on either side. Crafted by fans exclusively for French racer Pierre Gasly at the Grand Prix, the helmet is inspired by Binance’s distinctive colors and the Abu Dhabi night race ambiance. It incorporates Pierre’s preferred colors and intricate Arabic script, embodying the fusion of cultural aesthetics.

The exchange has formed such high-profile collaborations in the past. Under the leadership of the previous CEO, Changpeng Zhao, Binance partnered with soccer legend Cristiano Ronaldo, resulting in the creation of exclusive NFT collections. These collaborations extended beyond the digital realm, offering fans unprecedented experiences such as training sessions with the renowned soccer star.

Now, the exchange’s new face Richard Teng, soon after assuming leadership emphasized the continued robustness of the firm’s fundamentals. Despite facing the most significant regulatory actions by US authorities, Binance maintains its position as the world’s largest crypto exchange by volume. Teng highlighted the debt-free capital structure, modest expenses, and resilient revenues and profits, even with the user-friendly fee structure.

Binance: The Show Goes On

The transition of leadership at Binance occurred against the backdrop of substantial regulatory scrutiny. The former founder and CEO, Changpeng Zhao, stepped down after pleading guilty to violating US Anti-Money Laundering requirements in a settlement with the Department of Justice. Zhao was released under a $175 million bond, with a requirement to return to the US 14 days before the scheduled sentencing date on Feb. 24, 2024.

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Image Credit: Business Insider

The intriguing aspect now is whether the recent interaction between Binance’s new CEO and sports legends points toward another significant partnership at the intersection of cryptocurrency and sports. The true nature of this unexpected meeting amid the spectacle of the Grand Prix remains a mystery, leaving the crypto community in anticipation until time unveils the details.


Binance’s $943M Fund Exodus: Richard Teng Steps In As New CEO

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Amidst a leadership transition following the departure of Changpeng Zhao [CZ], Binance has witnessed a massive withdrawal of funds, sparking concerns among investors and traders. The latest data from Coinanalytics reveals that an astounding amount exceeding $943 million has been withdrawn from the exchange within the past 24 hours. This substantial movement of funds has not been limited to Binance alone, as other major platforms like Bitfinex and Kraken have also experienced substantial withdrawals, indicating the widespread impact of these unprecedented events.

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Binance's $943M Fund Exodus: Richard Teng Steps In As New CEO 6

Following CZ’s resignation from the post of CEO, Richard Teng became the new successor. Teng, formerly the CEO of Abu Dhabi Global Market, a prominent financial services regulator in the UAE capital, brings a wealth of experience to the role. He also recently served as the global head of regional markets at Binance and held key positions such as director of corporate finance at the Monetary Authority of Singapore.

Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself. As a shareholder and former CEO with historical knowledge of our company, I will remain available to the team to consult as needed, consistent with the framework set out in our U.S. agency resolutions.

Binance: CZ’s Next Hearing Scheduled For Feb’23

The lawsuit against Binance disclosed on November 21 involves three criminal charges levied against the exchange, encompassing operating an unlicensed money-transmitting business, violating the International Emergency Economic Powers Act, and engaging in conspiracy. In response, Binance has agreed to a substantial penalty, amounting to $4.3 billion in fines and forfeiture.

Changpeng Zhao, in his personal capacity, has pleaded guilty to violating the Bank Secrecy Act, acknowledging his role in causing a financial institution to violate this regulation. The Department of Justice is recommending a $50 million fine on Zhao, who has been released on a $175 million personal recognizance bond secured by $15 million in cash. A sentencing hearing for Zhao is scheduled for February 23.

After Regulatory Woes, Binance Ponders A Change In Leadership

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Binance might soon have a new CEO to address the overwhelming difficulties recently faced by the largest crypto exchange in the world.

According to those with knowledge of the situation, Richard Teng has emerged as the front-runner to succeed Zhao as CEO.

Teng, who has more than 11 years of work experience, formerly held the positions of chief exec of the Abu Dhabi Global Market, chief regulatory officer of the Singapore Exchange Ltd., and director of corporate finance of the Monetary Authority of Singapore.

Teng assumed the position of CEO of Singapore for Binance in August 2021, and he quickly progressed through the ranks.

With his most recent elevation, he took on even more authority, extending his leadership beyond Asia, Europe, the Middle East, and North Africa.

The succession issues became even more urgent as Binance dealt with regulatory issues in the US after the CFTC sued it for regulatory violations.

At the same time, the US Department of Justice has also been investigating the firm on money laundering laws and potential tax offenses, and it’s mulling potential charges.

Beyond the US, the CZ-led trading platform was forced to withdraw from Canada citing issues related to the nation’s regulations on stablecoins and investor limits.

Canada introduced harsher rules for trading digital assets earlier this year, which caused a number of significant crypto exchanges to leave the sector. Along with Binance, other trading firms like OKX, Paxos, Blockchain.com, and Deribit also made their exits known.

Again in mid-May, Binance’s Australian payments partner abruptly closed down, preventing local users from making bank transfers to deposit Australian dollars on the platform.

The move severely affected business as around two weeks later, it stopped all Australian trading pairs and bank withdrawals of the local currency.

Binance Leadership Overhaul Hints Willingness To Work With Regulators

Although Binance still has more trading volume than the combined volume of all other top centralized crypto exchanges, its position has never appeared shakier.

Based on Teng’s prior high-profile stints, his arrival into the picture makes him the ideal choice to help lead Binance through the regulatory maelstrom bearing down on it.

In the words of Campbell Harvey, a finance professor at Duke University, Teng’s appointment “checks the boxes for trust. Binance is signaling that they want to work with the regulators.”