Binance CEO Richard Teng Highlights Business Strength Amidst $4B Settlement

Published 22/11/2023, 15:35
Binance CEO Richard Teng Highlights Business Strength Amidst $4B Settlement
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  • Richard Teng, Binance’s new CEO, asserted Binance’s financial standing on Twitter.
  • Coinbase (NASDAQ:COIN) Director Conor Grogan provided a breakdown of Binance’s financials.
  • Binance recently finalized a $4.3 billion settlement with U.S. authorities.

In the wake of the recently unveiled $4.3 billion settlement between Binance and U.S. authorities, the newly appointed CEO, Richard Teng, took to Twitter to assert the cryptocurrency exchange’s financial standing.

Teng’s comments were in response to a statement by Coinbase Director Conor Grogan, who had dissected Binance Corporate’s crypto holdings and suggested the company could cover the substantial fine without resorting to crypto asset sales.

Teng highlighted the core strengths of Binance’s business model, stating, “The fundamentals of our business are very strong.” He pointed out that Binance continues to operate as the world’s largest crypto exchange by volume.

Moreover, Teng emphasized that Binance has a debt-free capital structure, modest expenses, and the ability to generate robust revenues and profits despite the relatively low fees charged to users.

Grogan’s post, which triggered Teng’s response, provided a detailed breakdown of Binance’s financial capacity. According to Grogan, Binance’s total assets, when excluding off-chain cash balances and funds held in wallets not covered by Proof of Reserves, stand at $6.35 billion and $3.19 billion in stablecoins.

Notably, Grogan suggested that Binance could potentially settle the full $4.3 billion fine without resorting to selling any crypto assets. Binance founder and former CEO Changpeng Zhao pleaded guilty to violating the U.S. anti-money laundering laws. The plea deal resulted in a $4.3 billion settlement. Upon waiting for sentencing, which is scheduled for next year, Zhao was permitted to remain in the United Arab Emirates.

The post Binance CEO Richard Teng Highlights Business Strength Amidst $4B Settlement appeared first on Coin Edition.

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