Binance sets up board of directors for first time amid legal issues: details

The last few years have not been smooth sailing for Binance, which has repeatedly found itself mired in legal trouble. First, Binance Holdings has established a seven-member board of directors – which will oversee the company’s decision-making and business-related resolutions, supporting CEO Richard Tang. The decision comes after the exchange recently received a summons from Nigerian authorities that suspected the exchange of involvement in facilitating illegal activities.

This is the first time in seven years since then. of Binance The company has constituted a board of directors. Gabriel Abid, Ambassador of Barbados to the UAE, has been appointed as the Chairperson of Binance’s Board of Directors. Co-founder Hina Chen is also part of the board along with company CEO Tang, an official Blog post revealed.

“This significant change in leadership is seen as a central change in the oversight of Binance. CEO Richard TangThe appointment was made in November following Binance’s settlement with US authorities. Since its founding in China in 2017, Binance has claimed to operate without a global headquarters. However, Teng has indicated a desire to implement a more traditional corporate structure, including defining its headquarters and effective board of directors,” Binance’s post said.

Given the company’s back-to-back legal battles, it seems natural that the company has decided to bring in more industry experts to run its operations.

Binance was investigated by the US Securities and Exchange Commission (SEC) last year for violating US business laws. In November 2023, the founder of the exchange, Changpeng Zhao Begged Criminal For failing to maintain an effective anti-money laundering program in the company.

Soon after, Zhao resigned as the company’s CEO and Binance paid $4.3 billion (approximately Rs. 35,855 crore) in fines to the US Department of Justice, the Treasury Department, and the Commodity Futures Trading Commission. .

Following Zhao’s resignation, Teng was named the exchange’s new CEO. However, even with Teng at the helm, Binance’s legal problems don’t seem close to being resolved.

Earlier this month, the Nigerian House of Representatives Committee on Financial Crimes Allegedly Summons Binance CEO Teng over suspicions of the exchange’s possible involvement in money laundering and terrorist financing. While details about Teng’s arrival in Nigeria for the meeting are not known, a Binance executive remains in the custody of Nigerian authorities. Allegedly Escaped and flew abroad leaving the company in an awkward situation.

Binance’s ambitions to become the world’s most licensed crypto exchange also hit a snag after the Philippines The ban was announced. on the exchange citing lack of official operational license.

As of 2022, there was Binance. To add A solid team of lawyers to help you deal with legal problems.

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