In June 2023, the Securities and Exchange Commission (SEC) filed lawsuits against Binance and Coinbase, accusing Binance of selling unregistered securities and other violations. These actions occurred under SEC Chair Gary Gensler, who has been highly critical of the crypto industry.
By November 2023, Binance exited the US as part of a $4.3 billion settlement with the US government. The settlement addressed allegations of sanctions violations, money laundering, and operating as an unlicensed money transmitter.
The agreement also imposed strict oversight, with the Justice Department appointing an independent compliance monitor for three years and the Treasury’s Financial Crimes Enforcement Network (FinCEN) instituting a five-year monitoring period.
Richard Teng’s Vision for Binance
Since assuming the role of CEO in November 2023, Teng has prioritized regulatory compliance. He replaced Changpeng Zhao, who stepped down after admitting to violations of US money laundering laws.
Teng has been candid about the exchange’s shortcomings, acknowledging in a 2023 interview with Cointelegraph that “there were gaps in terms of compliance.”
