Binance to Hire 1,000 Employees for Compliance Roles
World leading exchange Binance has plans to recruit at least 1,000 employees this year. This is according to a Thursday report by Bloomberg detailing Binance’s focus on compliance roles. The decision to go on a hiring spree comes at a time when the annual spending of Binance to meet regulatory requirements has exceeded $200 million. In an interview with Bloomberg, company CEO Richard Teng has attempted to explain the reason behind the firm’s focus on compliance roles. According to Teng, Binance continues to face regulatory battles from all sides. That is not to mention the current oversight from the U.S. agencies following a settlement of $4.3 billion last year. For Teng, though, staying in compliance would not be a big deal per se. He is well versed in financial regulation and has severally reiterated Binance’s commitment to meeting regulatory requirements. Binance Seeks to Expand Compliance Workforce Presently, Binance boasts a compliance workforce of about 500 individuals. However, the exchange plans to take that figure up to 700 by the end of 2024. This expansion is in line with the growing number of law enforcement requests that the firm receives. For context, Binance has received 63,000 such requests so far this year. Whereas, it only received 58,000 of those throughout 2023. Furthermore, there is the issue of compliance spending, which has surged significantly from $158 million two years ago to over $200 million annually. This includes all costs from US-appointed monitors, Forensic Risk Alliance and Sullivan & Cromwell, who keep track of Binance’s financial statements and transactions. Here’s Why The exchange might be going big on compliance. However, its regulatory woes may have made that a necessary choice. Binance continues to face a series of legal challenges, including a widely-publicised lawsuit from the Securities and Exchange Commission (SEC). There is also the issue of one of Binance’s top executives, in the person of Tigran Gambaryan, who was arrested in Nigeria in February over allegations bordering on illegality and tax evasion. In April, there were reports of former Binance CEO Changpeng Zhao being sentenced to four months in prison. That was after he pled guilty to violating the U.S. anti-money laundering laws. Teng remains very focused on compliance and has made several changes along the line since he took over the mantle of leadership from Zhao. Adjusting how the company works with prime brokers, tightening requirements for listing new digital tokens, and spinning off its venture arm are some of the most notable changes he has implemented so far.
North Dakota Joins Growing List of States Revoking Binance.US License
North Dakota emulates six other states to have revoked Binance.US’ license, becoming the seventh state to do so.
Binance and Kraken Face Legal Battle Over Bitcoin SV Delisting
An all-important aspect of the upcoming hearing will be determining whether Binance and Kraken’s delisting decisions were influenced by Craig Wright’s false claims of being Satoshi Nakamoto.
Binance Faces 3-Year Surveillance by FRA Amid Regulatory Scrutiny: DOJ Report
The United States Department of Justice (DOJ) is keen on helping the cryptocurrency exchange, Binance, achieve regulatory compliance. In line with this, it has enlisted Forensic Risk Alliance (FRA) to act as Binance’s oversight for the next three years. According to a rcent Bloomberg report, appointing a third-party monitor was a key part of Binance’s plea deal in November 2023. That is, when the exchange admitted to money laundering among other federal charges, and also incurred a hefty $4.3 billion fine along the line. The implication of this appointment is that FRA now has extensive access to Binance’s internal operations and personnel data after being saddled with the responsibility of providing regular updates to the DOJ. US Department of Justice Appoints FRA to Oversee Binance Compliance Meanwhile, there might be a little controversy around the decision to appoint FRA. Initially, law firm Sullivan & Cromwell was high up on the DOJ’s list of potential contractors for this task. However, the firm’s involvement with the bankrupt rival exchange, FTX, amid allegations of fraudulent conduct led to the DOJ choosing FRA ahead of it. According to FTX creditors, Sullivan & Cromwell was well aware of the fraudulent activities going on at FTX and may have even actively participated in the fraud. A court filing at the time, which was part of the class-action lawsuit against the exchange, reads in part: Interestingly, there are indications that Sullivan & Cromwell may yet secure another 5-year monitoring role over Binance. However, that will be under the Treasury Department’s Financial Crimes Enforcement Network. The development follows the recent imprisonment of Binance’s former CEO Changpeng Zhao. As UEEx earlier reported, Zhao faced legal troubles for lapses in Binance’s Anti-Money Laundering program. Although prosecutors tried hard to secure a longer imprisonment term, he received a four-month sentence as the judge cited a lack of direct evidence linking Zhao to specific illegal activities at the exchange.
Nigerian Government Traces Binance Executive to Kenya, Extradition Process Initiated
In a remarkable turn of events at the weekend, the Nigerian government has successfully tracked down the fleeing Binance executive Nadeem Anjarwalla. That is according to a local media report by Punch News. The executive was reportedly located in Kenya, marking a significant breakthrough in the ongoing investigation. As widely covered by several new outlets, Anjarwalla fled Nigeria in the heat of the legal scrutiny over the operations of Binance within the country. According to sources close to the matter, Nadeem had immediately gone into hiding as soon as he landed in Kenya. However, with collaborative efforts from the Nigerian police, Kenyan Police, and the Interpol, his cover has now been blown. Nigeria Blows Hot It might be worth noting that Nigeria is keen on seeing the ongoing investigation of Binance to a logical end. So much so that the country has left no stone unturned in its quest to prosecute the alleged offenders. The government prioritized the case to the point that the Electoral and Financial Crimes Commission (EFCC) had to take over the prosecution of the Binance executives. By doing so, Nigeria sends a strong message that it will not condone any forms of distortions in the country’s forex market. More so, the Nigerian government has also initiated Mr Anjarwalla’s extradition back to the country. According to Ola Olukoyede, the EFCC Chair, the commission is determined to speed up the extradition process. Therefore, the commission sought the assistance of the International Criminal Police Organisation, the United States Federal Bureau of Investigation, the governments of the United Kingdom, Northern Ireland, and that of Kenya to extradite Anjarwalla. Implications for Binance and Cryptocurrency Regulation The apprehension of the fleeing executive could have far-reaching implications for Binance and the wider cryptocurrency industry. It underscores the growing scrutiny and regulatory challenges faced by major players in the space, as governments around the world seek to assert control over digital asset exchanges and related activities. As of publication, Binance, one of the world’s largest cryptocurrency exchanges, has yet to issue an official statement regarding the latest developments. However, as the extradition process unfolds, all eyes will be on the outcome and its impact on Binance, which recently inaugrated its first board of directors, and the broader crypto regulation landscape. This latest development serves as a stark reminder of the complexities and challenges inherent in the intersection of technology, finance, and law.
Binance Creates Its First Board of Directors
Binance’s strategic decision to float a board of directors underscores the company’s commitment to robust governance and transparency.
