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- Austin Campbell emphasized the differences between the “historical and current state of Binance.”
- John Deaton asserted that Zhao’s plea deal, despite being a difficult choice, was the only choice.
- Campbell expressed expectations of increased DOJ oversight if Binance continues to operate.
Austin Campbell, founder and managing partner of Zero Knowledge Consulting, highlighted the difference between the “current Binance and the historical Binance.” Campbell claimed that Binance before 2021 had ineffective controls and Know Your Customer (KYC) and Anti-Money Laundering (AML) issues.
According to Campbell, Binance after 2021 was responsive to law enforcement and imposed “much tighter” KYC/AML regulations. Moreover, more executives who were well-experienced in the crypto space were involved.
“The Binance of 2023 is not the Binance of 2018,” said Campbell. However, he stated that Binance is viewed today “through the past lens.”
Recently, Changpeng Zhao resigned from his position as CEO of Binance and pleaded guilty to violating U.S. AML requirements. The plea deal involved preserving the company’s ability to continue operations.
Moreover, Campbell added that the Department of Justice’s request to remove Zhao during the time of these violations is “not shocking.” Additionally, it’s expected that the DOJ will have greater oversight powers over Binance if the exchange continues to operate, according to Campbell.
Campbell claimed that the settlement was a “good deal,” but he added that it’s “not fully pleasing to either side.” Per Campbell’s words, crypto skeptics were “in shambles,” as he stated that Binance didn’t turn out to be like FTX.
Campbell’s words were a response to Crypto Law founder John Deaton’s statement. Deaton claimed that Zhao “had no real choice” and that the plea deal would allow Zhao to keep his majority stake in Binance. Deaton stated that pleading guilty to a money laundering charge and likely getting two to five years of probation is what criminal defense attorneys would agree to.
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