Binance Co-CEO Teng Slams ‘Misleading’ Sanctions Violations Report

The world’s largest exchange Binance is pushing back against recent claims suggesting serious internal misconduct, emphasizing no sanctions violations occurred. Richard Teng, Co-CEO, stated no investigators were fired for raising concerns, and that Binance continues to meet regulatory obligations. 

The company has formally requested corrections to a February 13 report by Fortune, which allegedly contained errors and misleading implications.

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The report suggested at least five investigators from Binance’s compliance team were fired after finding over $1 billion in transactions linked to Iran. However, Binance says that’s not true, stating that any job actions were because of rule-breaking or misconduct, not whistleblowing. The company said it allows its employees to safely report concerns through proper channels and are protected by law.

Internal review and compliance measures

As per Teng, Binance performed an internal inquiry with lawyers and found no evidence of sanctions breaches. The company denied allegations that wrongdoing was uncovered and subsequently covered up. 

Furthermore, he stated, Binance remains committed to compliance obligations and has improved its compliance infrastructure since the 2023 settlement with U.S. regulators.

During the weekend, Binance’s Co-Founder Changpeng Zhao, also disputed the narrative, expressing skepticism about the internal consistency of allegations and their sourcing. Zhao stated, “If it were even true, one could just argue that employees were fired for not stopping the activity.” Zhao further clarified that under his leadership, transactions were processed through third-party anti-money laundering solutions commonly employed by law enforcement.

Market impact clarifications

Teng also recently addressed claims linking Binance to the October 10 cryptocurrency market liquidation. He stated the crash stemmed from global economic pressures, including China’s controls on rare earth metals and new U.S. tariffs, not internal issues at Binance. “Binance did not cause the crypto market liquidation event,” he said, emphasizing the event impacted multiple exchanges simultaneously.

He noted the scale of the market shift, comparing it with traditional equity markets. The U.S. equities market lost $1.5 trillion, while crypto liquidations amounted to roughly $19 billion. Teng highlighted that Binance responded to affected users, offering support that other platforms did not provide. Additionally, he explained that isolated glitches, like a stablecoin briefly losing its peg, did not trigger the broader market turmoil.

Physical security concerns

Apart from the challenges posed by regulations and the market, Binance is also experiencing growing security risks. In Lyon, three masked men attempted a home invasion on David Princay, the CEO of Binance France. 

The police arrested the culprits after monitoring the movement of trains and CCTV cameras to track the stolen mobile phones. The would-be robbers first broke into a neighbour’s house to look for the target, indicating the growing danger for executives in the cryptocurrency industry.

In light of this, Binance is strongly rejecting any claims of sanctions violations or misconduct within the company, stressing it has enhanced compliance procedures in place.

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