Binance, touted as the world’s largest crypto exchange, is undergoing a turmoil post the exit of its founder and former CEO Changpeng Zhao last week. Richard Teng, the former global head of regional markets at Binance has been designated as the company’s new CEO. In an address to the Binance community, Teng published an official blog ensuring users that their assets are safe and protected in the backdrop of internal changes at the company, that is headquartered in the US.
“Our capital structure is debt-free, our expenses are modest, and, despite the low transaction fees we charge our users, we have robust revenues and profits. From our proof-of-reserves system to our Secure Asset Fund for Users (SAFU) emergency fund, we are committed to ensuring you feel secure in the integrity of our platform,” Teng wrote in his first blog post as the CEO of Binance.
On November 21, Zhao announced that he was exiting the company. This exit however, was not aimed at propelling the crypto mogul into another project.
Zhao, as per the US Securities and Exchange Commission (SEC), violated the country’s anti-money laundering laws. This reportedly led the firm and Zhao to conceal over 100,000 suspicious transactions with organisations like Hamas, al Qaeda, and the Islamic State of Iraq and Syria, all of which are categorised as terrorist groups by the US.
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.
Binance is no longer a baby. It is…
— CZ :large_orange_diamond: BNB (@cz_binance) November 21, 2023
Before stepping down as the CEO, Zhao named Teng as his successor. Teng, since then, has been defending Binance’s financial status on X, claiming that the company has robust revenues and profits despite low fee charges.
The fundamentals of our business are VERY strong.
Binance continues to operate the world’s largest crypto exchange by volume, our capital structure is debt-free, expenses are modest, and, despite the low fees we charge our users, we have robust revenues and profits. https://t.co/PHq2YS0CP5
— Richard Teng (@_RichardTeng) November 22, 2023
“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. I understand the unique challenges and opportunities that our industry presents, and I am dedicated to steering us through crypto winters and summers alike,” Teng’s blog noted.