Richard Teng, the new CEO of Binance, is trying to alleviate concerns among investors and customers in the aftermath of the exchange’s legal troubles with U.S. authorities.
In a post on X (formerly Twitter), Teng emphasized the exchange’s business fundamentals are “very strong.” According to him, Binance is debt-free and boasts strong revenues and profits while maintaining minimal expenses.
I backed out Binance Corporate’s crypto holdings from their Proof of Reserves: $6.35B total assets, $3.19B in stablecoins
Doesn’t include off-chain cash balances or funds held in wallets not in PoR
Most likely able to pay full $4.3B DoJ fine with 0 crypto asset sales pic.twitter.com/GK45EwRSPO
— Conor (@jconorgrogan) November 21, 2023
Teng’s statement was in response to a post by Coinbase’s director, Conor Grogan, discussing Binance’s ability to cover the full $4.3 billion penalty it incurred after reaching a settlement with the U.S. Department of Justice (DOJ) without the need to liquidate its crypto assets. The U.S. DOJ had accused Binance of violating multiple financial regulations in the country, including operating an unlicensed money transmitter platform.
Earlier, Teng shared the same sentiment in his first message as Binance’s CEO, where he declared the foundation of the exchange is “stronger than ever” and emphasized that his tenure intends to build on this and ensure the exchange achieves its primary mission. He also outlined his focus on reinstating investor confidence, collaborating with regulators, and driving the adoption of Web3.
It is an honour and with the deepest humility that I step into the role of Binance’s new CEO.
We operate the world’s largest cryptocurrency exchange by volume. The trust placed on us by our 150m users and thousands of employees is a responsibility that I take seriously and hold…
— Richard Teng (@_RichardTeng) November 21, 2023
Teng assumed the CEO position following the departure of Binance’s co-founder, Changpeng Zhao. Zhao was heavily involved in the settlement negotiations with U.S. authorities and potentially faces jail terms for alleged complicity in the exchange’s regulatory violations.
Crypto intelligence firm Nansen reported that Binance saw net outflows of up to $1 billion after Zhao’s departure as CEO.
Over $1B in value has left Binance since the news of @cz_binance‘s departure. This is a combination of prices dropping and liquidity leaving
However, there remains $65B in Binance’s control at the time of writing. This isn’t the first time Binance has dealt with large outflows pic.twitter.com/2hvoKwGL9y
— Nansen 🧭 (@nansen_ai) November 21, 2023
According to Nansen, despite these withdrawals, Binance’s market value remains substantial, estimated at $64,666,583,162.30. The exchange continues to maintain its leading position in daily trading volume among cryptocurrency platforms.
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