The new Binance CEO revealed that Binance will begin operating a traditional corporate structure under his leadership.
New Binance CEO Richard Teng promised that the company would maintain a greater commitment to transparency going forward. Teng made this promise in his first blog post addressed to the company’s users.
Mr Teng took over as CEO after Changpeng Zhao (CZ) pleaded guilty to money laundering and sanctions violations. CZ was asked to resign from the company as part of a $4 billion criminal settlement with the U.S. government.
Before taking on the CEO role, Teng was a former regional market leader. He also has 30 years of financial services and regulatory experience. Teng believes he has what it takes to leverage this and overcome current challenges.
“I understand the unique challenges and opportunities our industry presents, and I am committed to navigating cryptocurrency winter and summer alike,” he said.
Binance CEO: Market fundamentals remain strong
Since the DOJ announced the $4 billion fine, Binance has seen about $1 billion in outflows from its platform. According to insights from CCData, Binance currently only controls 32% of cryptocurrency spot trading and 50% of derivatives trading, making its exchange positions less dominant than before.
Nonetheless, Coinbase executive Conor Grogan said: Believe Binance has the financial resources necessary to settle the $4 billion fine without liquidating its assets. Mr Teng also confirmed this claim. Teng said the company has strong basic principles and will move toward development.
“We are starting from a strong position. The fundamentals of the business are very solid. Our capital structure is debt-free, our costs are model and our revenues and profits remain strong,” he said.
A move toward greater transparency
Additionally, the new Binance CEO stated that Binance will begin operating a traditional corporate structure under his leadership. He noted that this will include board, address and financial transparency, unlike before.
“Once we have the corporate structure in place, we will share this financial information. We all know that auditors require this, but regulators will also require all of these things,” Teng said.
According to Teng, Binance will begin publishing regular financial statements and board composition updates. However, the new CEO did not provide a timeline for these actions. Mr. Teng once again assured exchange customers of the company’s commitment to asset protection.
“We are committed to ensuring that you feel safe in the integrity of our platform,” he concluded.
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