New Binance CEO Says Exchange Has “Robust Revenues and Profits,” Hinting at Ability to Pay $4.3B Fines
Changpeng Zhao, the new CEO of Binance, the world’s largest cryptocurrency exchange, recently claimed the exchange has “robust revenues and profits” — a hint that it may have the funds to pay a potential $4.3 billion fine. Zhao made the comments at a press conference in Shanghai, responding to questions about whether the exchange could pay the fine, as threatened by the U.S. Department of Justice (DOJ).
The DOJ recently charged Binance with multiple counts of money laundering, including unauthorized trading and unlicensed money services business. It is estimated that the DOJ’s proposed financial penalties amount to over $4.3 billion in gross proceeds.
Zhao said that the exchange “has always paid attention to compliance,” and has robust revenues and profits that could make it possible for Binance to pay the fine. He also stated that Binance has “made some arrangements” and that the company is “communicating with the U.S. government.”
Zhao was clear that he can’t discuss the ongoing legal matter and that Binance is still waiting for the particulars of what the DOJ is looking for and the specifics of the penalties. However, he did note that Binance’s compliance with respect to U.S. regulations is “well ahead” of other exchanges because of the company’s diligence when it comes to compliance matters.
Binance is currently in the middle of a heated controversy surrounding its alleged money laundering activities. While Binance has denied the allegations, the exchange has already begun to face consequences in the form of being delisted from several exchanges, including Kraken.