Big investors flock to Binance in post-CZ era, CEO says

“The first hundred million took us five years to get on board,” Teng said. “The next hundred million took us two years and the pace of adoption will be much faster.”

Teng stepped into the role of CEO in late 2023 after both Binance and the company’s founder, Changpeng Zhao, pleaded guilty last November to criminal charges related to money laundering on the platform. Binance agreed to pay a $4.3 million fine to resolve the issue, one of the largest such settlements in US history.

Following this leadership transition, Binance saw an outflow of nearly $1 billion and its native coin, BNB, plummeted 9%.

At the time, it was uncertain whether Teng would be able to build confidence in Binance, but based on his observations, it appears that the company has turned the page on its legal troubles and continued to grow.

A former regulator, Teng has tried to shake Binance’s lawless reputation, in part by taking a measured tone and leaning into compliance efforts. Following the historic settlement, he made significant changes to the company’s corporate structure. This included introducing a board of seven directors as part of an effort to distance the company from Zhao, although most are company insiders.

Teng also increased compliance spending to $200 million and is expanding the department to ensure the company complies with regulatory requirements on anti-money laundering laws and know-your-customer protocols. In May, Binance introduced two external monitors that report to US agencies and were imposed on the company as part of the settlement. Teng also plans to increase the number of compliance staff by five hundred to seven hundred by the end of the year, according to Bloomberg.

“This is also a demonstration of our willingness – a demonstration of our ability to comply with all rules and regulations,” Teng said. wealth in April.

Binance’s comeback comes at a time when the broader crypto market has been on a prolonged rise, helped in part by mainstream firms like BlackRock and Fidelity joining the industry.

Meanwhile, the price of Bitcoin bounced back to near-record highs this week following the Federal Reserve’s cut in interest rates. The original cryptocurrency briefly rose above $63,000, while Binance Coin is up 81% year-to-date.