Binance’s explosive growth led to compliance failures – CEO Richard Teng on $4.3B settlement
The new CEO of Binance takes stock of the exchange’s future following a landmark $4.3 billion settlement with United States authorities in a one-on-one interview with Cointelegraph.
“As part of the settlement, CZ cannot be involved in the day-to-day running of the company’s operations,” Richard Teng explains.
Despite that, the incumbent CEO of Binance cuts the figure of a man reveling in the challenges ahead.
“I’m taking the baton and pushing ahead with our growth agenda while working very closely with global regulators.”
Teng believes that the “overcast” conditions clouding Binance in recent months are lifting following its staggering $4.3 billion settlement with the United States Justice Department relating to a raft of violations of U.S.
$4.3B settlement a result of early gaps in compliance
The exchange has paid dearly for mistakes made during its meteoric growth from 2017 onwards. Teng recalls how Zhao built Binance from a team of six people to a global operation consisting of thousands of employees that serves a user base estimated to be more than 166 million.
“In those very early days while we were building up the company, there were gaps in terms of compliance.
The shortcomings of its early compliance regime have led to the largest crypto-related settlement in U.S.
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Binance’s obligations to U.S. authorities
Binance is now left to shoulder the ongoing cost and scrutiny that its settlement with U.S. This includes a five-year monitorship and significant compliance undertakings to ensure “Binance’s complete exit from the United States.”
Teng wouldn’t be drawn into the details of Binance.US’s ongoing legal battle with the U.S.
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