• Source:JND
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Binance Latest News:  In recent years, Binance has faced its fair share of challenges, grappling with legal matters that have put its operations under scrutiny. Now, in a notable move, Binance Holdings has announced to set up a board of directors, consisting of seven members on Tuesday. This new board will play a pivotal role in advising CEO Richard Teng on key decisions and business strategies, reported Gadget 360.

The decision to establish the board comes amid increasing attention on the exchange, particularly following a summons from Nigerian authorities over concerns about its potential involvement in illicit activities.

Gabriel Abed to head Binance board

The company has established a board of directors for the first time in its seven-year history. Notably, Gabriel Abed, the ambassador of Barbados to the UAE, has been named as the chairperson of this board. The company's CEO, Teng, and co-founder, Heina Chen, are also among the members, as disclosed in an official blog post. This move signals a pivotal moment for Binance as it seeks to navigate through a landscape of legal challenges and enhance its governance structure.

“This significant change in leadership is viewed as a central shift at Binance under the supervision of CEO Richard Teng, appointed in November following Binance's settlement with US authorities. Since its establishment in China in 2017, Binance claimed to operate without a global headquarters. Teng, however, has indicated the desire to apply a more conventional corporate structure, including defining its headquarters and effective board of directors,” the post by Binance said.

Binance tumbling on legal challenges

With Binance facing consecutive legal challenges, the company seeks the guidance of industry experts to navigate its operations.

The scrutiny intensified when the US Securities and Exchange Commission (SEC) launched an investigation into Binance last year, alleging violations of US business laws. In November 2023, Changpeng Zhao, the exchange's founder, admitted guilty to failing to maintain an effective Anti-Money Laundering program.

Consequently, Zhao stepped down as CEO, and Binance agreed to a settlement, paying a hefty $4.3 billion (roughly Rs. 35,855 crores) in penalties to the US Justice Department, Treasury Department, and Commodity Futures Trading Commission.