Binance Will Finally Have A Board Of Directors To Try Rebuilding Its Reputation 

Binance has established its first-ever board of directors in a strategic move to revamp its public image. This step comes in the aftermath of last year’s admission of guilt to U.S. charges related to anti-money laundering and sanctions violations.

The New Board Will Have A Mix Of Internal And External Talents

Bloomberg reported that Gabriel Abed, who previously served as the ambassador of Barbados to the United Arab Emirates, has been named chairman of this new seven-member board.

The board is composed of a blend of internal and external talents. Alongside Abed, the board includes Binance’s Chief Executive Officer, Richard Teng, and three additional company executives: Heina Chen, Jinkai He, and Lilai Wang.

Complementing the company insiders are two figures from outside the organization, Arnaud Ventura, a managing partner at Gojo & Co, an investment firm, and Xin Wang, CEO of Bayview Acquisition Corp. This significant restructuring officially took effect on March 7.

Founding Team’s Impact and New Board Dynamics

Chen, He, and Wang, among the earliest employees at Binance, are recognized as founding team members of the cryptocurrency exchange. Chen occupies a senior executive role and co-founded Binance. Wang leads the charge on Binance’s technological development, while He has been instrumental in managing key units within Binance, especially the fiat on-and-off ramps.

The installation of a new board under CEO Richard Teng, who assumed leadership in November following the company’s settlement with US authorities, marks a significant shift for Binance. Despite this, industry experts hold some concerns.

Austin Campbell, a blockchain consultant and adjunct professor at Columbia Business School, shared with Bloomberg his observation that the board’s makeup, heavily inclined towards company insiders, indicates a reluctance towards external governance and scrutiny.

Campbell pointed out the absence of independent board members with substantial experience in regulated financial risk or compliance as a shortfall. Nonetheless, he views the establishment of the board as a forward step, expecting it will be highly useful to the company’s future.

Binance Is Still Dealing With The Nigerian Incident

Binance has initiated significant structural changes by establishing a board and appointing a chairman, marking its transition towards a more traditional corporate framework after years without a designated headquarters.

In a major legal development, the company consented to a $4.3 billion payment in February, as part of a plea agreement sanctioned by a US judge.

Changpeng Zhao, the founder of Binance, has admitted guilt to charges of anti-money laundering and sanctions violations, with his sentencing scheduled for April.

In a recent legal turn, investors who aimed to file a lawsuit against the exchange, its former CEO Changpeng Zhao, and other executives, were granted a renewed opportunity to advance their case last month.

Binance faced operational challenges as it was compelled to halt all transactions involving the Nigerian naira (NGN), the local fiat currency, following intensified regulatory examination.

Previously, the Nigerian government had levied a huge $10 billion fine on Binance in an effort to regulate the platform and stabilize the country’s currency.

The significant measures taken by the Nigerian government against Binance and similar cryptocurrency firms come from concerns about the ongoing manipulation of the Forex market and the illicit transfer of funds.