On October 17, 2022, Reuters, a news agency, published an article on cryptocurrency exchange Binance, titled “How Binance CEO and aides plotted to dodge regulators in US and UK.” According to the Reuters’ article, Binance’s polices had been subjected to a money laundering investigation by the US Justice Department for around a year, and whether the cryptocurrency exchange has been in violation of the Bank Secrecy Act.
In response to the article, Changpeng Zhao, founder and CEO, Binance, commented on his take around the entire scenario. At the beginning of the statement, Zhao mentioned a Reuters reporter and how the person has published a number of stories in the past around the exchange based on anonymous sources. Previously, Binance released the full email exchange with the same Reuters reporter on account of an alleged breakdown in trust.
Zhao stated about the exchange’s commitment to compliance. “Since last year alone, we have hired more than 4,000 new employees, many of whom are in the compliance, investigations and security space. Today, Binance is a very different company than it was when it was founded. We have been working hand-in-glove with regulators across the globe to restructure our organization and upgrade our systems. Our global security and compliance team has grown to more than 500 employees across the globe and includes professionals with backgrounds as regulators, senior investigators from distinguished blockchain analysis firms and law enforcement agents who have led some of the largest investigations into cybercrimes,” Zhao said.
Moreover, Zhao claimed about being ‘transparent’ with his leadership style, and that the company doesn’t reveal its offices’ locations due to security concerns. Zhao also highlighted on the “Tai Chi Powerpoint,” by mentioning about previously providing clarifications to Reuters on the point which weren’t accepted. “Let me state clearly once again for the record: it was never implemented. I personally rejected it. The entire powerpoint is only seven slides long, lacks any actionable direction, and looks like a 5th grader put it together. The proposal was rejected after a presentation and a follow-up round of inquiries. Eventually, Binance.US was set up based on advice from leading US law firms,” Zhao said.
“In our case, employees have an option to decide how they want to receive their salary – fiat, crypto or a combination – based on local laws in each jurisdiction. Importantly, they are expected to follow the tax laws of their home country without exception,” Zhao stated on the exchange’s employees compensatory policy.
Concluding his statement, Zhao emphasised on his desire to have strong and open relationships with reporters from all outlets, and to ensure the safety of his family. “I can live with the occasional negative news story – we’re focused on building and improving Binance and the blockchain ecosystem. We’re in this for the long haul. It’s never about tomorrow, this year or even next year. We are building a company that we believe will last a hundred years or more,” Zhao noted.
Also Read: SPECIAL REPORT – How Binance CEO and aides plotted to dodge regulators in US and UK