Binance has selected Richard Teng, its head of regional markets outside of the United States, as its new CEO. Changpeng “CZ” Zhao, the company’s founder and former CEO, has resigned and pled guilty to charges brought by the US Department of Justice.
Until earlier this week, when news came that the US Justice Department had struck a $4.3 billion settlement with the exchange, nearly no expert predicted this market turn. Richard Teng still faces a number of challenges as the CZ era comes to a close.
Richard Teng is the new CEO of Binance
Binance and Zhao appointed Richard Teng, a former CEO of the UAE capital’s financial services regulator, Abu Dhabi Global Market, as Binance’s new CEO. Richard Teng most recently served as Binance’s global head of regional markets. He was previously the Monetary Authority of Singapore’s director of corporate finance.
Zhao stated on X that he “must take responsibility” and that it was “not easy to let go emotionally.” The controversial crypto entrepreneur, who was accused of breaking the US Bank Secrecy Act as well as sanctions violations, said that he was “proud to point out” that US agencies did not suggest Binance had misused user cash or manipulated the market.
Richard is a highly qualified leader and, with over three decades of financial services and regulatory experience, he will navigate the company through its next period of growth. He will ensure Binance delivers on our next phase of security, transparency, compliance, and growth.
CZ
According to the lawsuit against Binance, which was unsealed on Tuesday afternoon, the exchange faces three criminal allegations, including conducting an unregistered money-transmitting business, violating the International Emergency Economic Powers Act, and conspiracy.
The exchange has consented to fines and forfeitures totaling $4.3 billion. On his way out, CZ notes that he will take a back seat: “I can’t see myself being a CEO driving a startup again. I am content being a one-shot (lucky) entrepreneur.” CZ adds:
Should there be listeners, I may be open to being a coach/mentor to a small number of upcoming entrepreneurs privately. If for nothing else, I can at least tell them what not to do.
CZ
Teng’s official notice
As CZ stepped down, he gave Binance reigns to Teng. Shortly after that, Richard Teng also made a post on X after the DOJ press conference began. Teng sought to reassure Binance users and set a clear roadmap from the day’s events in his first public communication as CEO.
Teng outlined three areas of attention for himself and Binance, beginning with “reassuring users that they can remain confident in the company’s financial strength, security, and safety.”
Richard Teng’s challenge will be mainly to rekindle trust in the exchange, despite the fact that the trading platform remains the largest exchange, with around $12.6 billion in trading activity, according to CoinMarketCap data. He notes that:
With CZ, and our leadership team’s support, I have accepted this role so that we can continue to meet and exceed the expectations of stakeholders while achieving our core mission, the freedom of money.
The foundation on which Binance stands today is stronger than ever. To ensure a bright future, I intend to use everything I’ve learned over the past three decades of financial services and regulatory experience to guide our remarkable, innovative, and committed team.
Richard Teng
This is undoubtedly the biggest win for US regulators this year, as the $4.3 billion settlement is one of the country’s largest corporate settlements in history.
Though the deal did not include the United States Securities and Exchange Commission (SEC), which is also suing Binance, it shows how much authorities could push for a settlement as an easy win against most crypto firms.
