Binance, one of the largest cryptocurrency exchanges, recently appointed Richard Teng as its new CEO following the resignation of Changpeng Zhao. In a recent post on X (formerly Twitter), Teng expressed his confidence in the exchange’s ability to pay the $4.3 billion fine imposed by the US Justice Department.
Financial Strength Amidst Challenges
Teng emphasized, “The fundamentals of our business are VERY strong,” responding to a statement made by Coinbase’s Director of Business Development, Connor Lango. Lango suggested that Binance would be able to pay the full fine without having to sell any of its crypto assets.
To support his claim, Lango shared his findings after reviewing Binance’s Proof of Reserves. He discovered that the exchange still retains a substantial amount of assets, with $6.35 billion in total and $3.19 billion in stablecoins.
Despite the positive outlook portrayed by the new CEO, Binance has recently experienced significant outflows. Over the past 24 hours alone, the exchange saw over $900 million leave its platform. DefiLlama’s data reveals $913 million in outflows within the past day, with $605 million in net outflows over the past week.
However, it is worth noting that Binance has also witnessed significant inflows amounting to $1.78 billion over the past month. This influx stands as the largest among all centralized crypto exchanges tracked by DefiLlama.
Legal Challenges and Future Prospects
Binance and its former CEO, Changpeng Zhao, recently pleaded guilty to criminal charges related to money laundering and violations of US sanctions. As part of a settlement with the US Department of Justice, Binance can continue its operations. However, Changpeng Zhao will personally pay $200 million in fines and may face a maximum prison sentence of 10 years.
Amidst regulatory hurdles, Richard Teng’s appointment as the new CEO positioned him as a potential successor to Zhao. Teng’s impressive background, with senior positions at Singapore’s central bank and Abu Dhabi’s international free-trade zone, makes him an ideal candidate to guide Binance through the existing regulatory challenges.
Teng’s inaugural responsibility at Binance involved obtaining a crypto license in Singapore. Although the initial application was unsuccessful due to the affiliate’s failure to meet anti-money laundering and terrorist financing criteria, Teng’s progression within the company remained unaffected. He continued to rise through the ranks, overseeing the Middle East and North Africa division, and eventually expanding his oversight to cover Europe and Asia.
Teng’s ascent at Binance has also seen him become part of a select group of trusted confidants to Zhao, including He Yi, Binance’s co-founder and the person with whom Zhao has two children.
