Binance’s new CEO claims the embattled exchange’s business fundamentals remain “very strong” despite recent regulatory headwinds.
Richard Teng, who previously served as head of regional markets at Binance, was promoted to CEO earlier this week after the company’s previous CEO Changpeng Zhao resigned.
Zhao subsequently resigned agree to plead guilty to violate US federal law requiring financial institutions to protect themselves against money laundering and terrorist financing.
The US Department of Justice also imposed $4.3 billion in fines and forfeitures on Binance after the exchange agreed to plead guilty to violating the Bank Secrecy Act and the International Emergency Economic Powers Act, and to failing to register as a money transfer company.
Teng, however, maintains that Binance’s business will continue to thrive.
“Binance continues to operate the largest crypto exchange in the world by volume, our capital structure is debt-free, fees are modest, and despite the low fees we charge our users, we have robust revenues and profits.”
Conor Grogan, director of product strategy and operations at Coinbase, say he deduced Binance Corporate’s crypto holdings from their evidence of reserves, noting that they consist of $6.35 billion in total assets, including $3.19 billion in stablecoins.
Grogan notes that this figure does not take into account off-chain cash balances or funds in wallets that are not included in the exchange’s proof of reserves.
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