Binance has successfully reached agreements with US authorities, settling historical registration, compliance and sanctions issues. In an official statement released on November 22, the cryptocurrency giant clarified that these resolutions “do not allege or indicate that Binance misappropriated any user funds” nor did the company “[engage] in any market manipulation.”
As part of the settlement, Binance will pay $4.3 billion in fines. According to Attorney General Merrick Garland, this is “one of the largest corporate penalties in US history.”
Turning point
In the statement about Binance reaching resolutions with authorities, the company described the development as a pivotal moment.
“This announcement allows our company to turn the page on a challenging yet transformative chapter of learning and growth and to begin to share our vision for Binance’s exciting future and the future of the crypto industry,” shared the company.
Furthermore, Binance announced that Changpeng Zhao will also be stepping down from his role as chief executive officer (CEO). As a majority shareholder, he will continue to serve as a valuable resource for consultation regarding the business’s historical aspects.
Zhao founded the company in 2017 and raised $15 million through an initial coin offering.
Former Global Head of Regional Markets Richard Teng will take over as the new CEO. He notably served as the CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market.
“Richard is a highly qualified leader and, with over three decades of financial services and regulatory experience, he will navigate the company through its next period of growth,” remarked Binance.
Read: Binance’s CZ reacts to CFTC complaint
On collaboration and transparency
As Binance gained resolutions, it also reiterated its commitment to cooperating with law enforcement authorities.
Currently, the company boasts a team of over 70 members engaged in interactions with global agencies. In 2023 alone, they have assisted in addressing national security concerns and processed over 52,700 law enforcement requests. Additionally, they regularly conduct training workshops worldwide, with a dedicated Law Enforcement Training Team delivering 120 sessions this year.
In terms of transparency, Binance ensures customers can withdraw 100 percent of their assets anytime.
“We take our responsibility as a custodian very seriously and maintain 1:1 backing for every user asset. This means that users can withdraw 100 percent of their assets from the platform at any time. Importantly, we have never faltered in upholding our core values,” it explained.
As part of its asset security and transparency measures, they have also shared wallet addresses, published proofs of reserves and established initiatives like the Margin Insurance Fund and the Secure Asset Fund for Users (SAFU).
Binance also focuses on education, offering over 430 articles, glossary entries and courses on Binance Academy in 30 languages. In addition to this, the company collaborates with universities worldwide and launches anti-scam campaigns with local partners.
Bullish outlook remains
Despite the regulatory challenges, the fundamentals of Binance’s business remain robust. The platform continues to operate as the world’s largest cryptocurrency exchange by volume.
Last year, it oversaw spot trades amounting to $5.3 trillion. This figure made up more than two-thirds of the total volume managed by centralized cryptocurrency exchanges. In 2023, the company already surpassed the 150 million registered user milestone.
Looking forward, Binance asserted its bullish outlook for the cryptocurrency industry.
“We have built a community and an ecosystem that empowers individuals to harness the power of blockchain technology to unlock opportunities for their families, communities, and economies around the world,” noted the company.
For more technology news, click here.
