Recently appointed Binance CEO Richard Teng remains steadfast in his assurance of the exchange’s financial robustness, even in the face of a substantial $4.3 billion penalty imposed by U.S. authorities.
Richard Teng, the new CEO of Binance, reaffirmed the strength of the platform’s fundamentals, responding to positive remarks from Coinbase executive Conor Grogan about Binance’s recent proof-of-reserves report on November 22. Teng emphasized the resilience of trading volumes, expenses, revenues, and profits.
The fundamentals of our business are VERY strong.
Binance continues to operate the world's largest crypto exchange by volume, our capital structure is debt-free, expenses are modest, and, despite the low fees we charge our users, we have robust revenues and profits. https://t.co/PHq2YS0CP5
— Richard Teng (@_RichardTeng) November 22, 2023
Coinbase Backs Binance Amid $4.3B DOJ Fine
Coinbase executive Conor Grogan acknowledged Binance’s substantial crypto asset reserves, verified at $6.35 billion in the recent reserves report. He emphasized additional unaccounted cash and wallet balances, further bolstering the platform’s overall assets.
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
Grogan continued to endorse Binance, expressing confidence that the significant U.S. Department of Justice (DOJ) fine, coupled with deferred payment options of approximately 15 months and the exchange’s robust capitalization, could be absorbed without the need to liquidate positions or impact user holdings.
Binance Leadership Shift: Zhao Steps Down, Teng Takes Over
In a customer update on Nov. 22, Binance clarified that U.S. regulators did not accuse the exchange of misappropriating customer funds or manipulating prices. Despite this, the exchange is undergoing a leadership change, with founder Changpeng Zhao stepping down as CEO. Richard Teng, former Global Head of Regional Markets, assumes the role.
Binance reassured customers of its commitment to core values, especially customer asset security, and highlighted its solid financial standing based on multiple audits. While facing legal challenges, supporters believe Binance remains operationally viable.
On Nov. 21, Zhao resigned and pleaded guilty to violating U.S. anti-money laundering laws, agreeing to a $4.3 billion settlement, including a $50 million payment.
Following the announcement, Bitcoin prices experienced a pullback but maintain an overall uptrend, with an immediate resistance level at around $38,000.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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