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Following the recent $4.3 billion settlement with the U.S. Department of Justice (DOJ), Binance’s new CEO, Richard Teng, has stated that the company has evolved beyond previous cultural issues and is now focused on regulatory maturity and sustainability.
Addressing concerns raised by the DOJ regarding Binance’s past approach, Teng acknowledged that the company operated differently in its early stages of development. However, he emphasized that Binance has undergone significant changes as it has transitioned into a more mature regulatory environment.
“In those very early stages of development, Binance was operating in a different fashion,” said Teng during an interview with CNBC’s Arjun Kharpal at the Paris Blockchain Week crypto conference in Paris, France. “But we have moved past that, as the company moved into regulatory maturity, [and] we are moving toward sustainability.”
The $4.3 billion settlement with the DOJ in November involved a forfeiture of $2.5 billion and a fine of $1.8 billion. Former Binance CEO Changpeng Zhao, charged with violating the Bank Secrecy Act, agreed to step down as part of the plea deals, effectively concluding a lengthy investigation into the crypto exchange.
The DOJ’s investigation revealed that Binance had adopted a “move first, ask forgiveness later” approach under Zhao’s leadership, prioritizing growth over compliance with U.S. law. Additionally, the exchange was accused of facilitating transactions between U.S. users and users in jurisdictions subject to U.S. sanctions.
Teng’s remarks underscore Binance’s commitment to rectifying past issues and prioritizing regulatory compliance moving forward. The company aims to foster a culture of transparency and accountability while navigating the evolving regulatory landscape in the cryptocurrency industry.
