Changpeng Zhao, the founder and former CEO of cryptocurrency exchange Binance, has been permanently suspended from the firm following allegations of legal infractions.
Allegations Made
The U.S. Department of Justice has accused Changpeng Zhao of breaching U.S. security laws, particularly by failing to uphold an effective anti-money laundering (AML) program. As a result, Binance incurred legal liabilities totaling more than $4 billion.
Richard Teng’s New Position
In November 2023, Zhao resigned as CEO, and Richard Teng assumed the position. The primary stipulation of the deal was for Zhao to resign from his role and be prohibited from assuming any other position within the company.
Consequences and New Appointments
New Binance CEO Richard Teng has affirmed that Changpeng Zhao will not resume his role as the leader of Binance. However, Zhao will retain substantial influence as a majority shareholder. The crypto exchange is now recruiting a large number of new staff members, with a particular emphasis on positions related to regulatory compliance. Binance allocates more than $200 million each year towards ensuring adherence to regulatory requirements. Meanwhile, Philip Martin, Natalie Tang, and Yatin Khanna have filed a lawsuit claiming that Binance's insufficient Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols allowed stolen assets to be laundered through its platform.
In conclusion, the leadership changes and new measures to improve compliance programs at Binance indicate significant transformations and attempts by the company to improve its business practices and reputation.
Comments