Binance Appoints First-Ever Board of Directors, Led by Gabriel Abed

• During leadership changes, Binance forms a new board with execs and independent members, chaired by Gabriel Abed.

• The move follows significant leadership changes, including Richard Teng’s appointment as CEO and the resignation of former CEO Changpeng “CZ” Zhao amid a settlement with U.S. authorities.

Binance Holdings, the renowned cryptocurrency exchange, has unveiled a newly constituted board of directors, signaling a significant shift in its leadership structure. The new board comprises a blend of company insiders and independent professionals, underscoring Binance’s commitment to bolstering governance and regulatory compliance. This move follows the exchange’s admission of guilt to US authorities over anti-money laundering (AML) charges and sanctions violations.

The establishment of the board represents a pivotal milestone for Binance, especially following the appointment of Richard Teng as CEO in November 2023, as reported by Crypto News Flash. Teng’s ascent to the CEO role coincided with the resignation of Changpeng “CZ” Zhao, the former CEO, in conjunction with a settlement agreement with U.S. authorities.

The board’s chairmanship has been assumed by Gabriel Abed, formerly the ambassador of Barbados to the United Arab Emirates (UAE), bringing a wealth of diplomatic experience to the table. Additionally, the board includes prominent figures such as Binance CEO Richard Teng, co-founder Heina Chen, Bayview Acquisition Corp CEO Xin Wang, Gojo & Company managing partner Arnaud Ventura, Roger Wang, and Rock He. Chen, He, and Wang, reportedly integral members of Binance since its inception, form part of the exchange’s founding team. Chen presently serves as a senior executive and co-founder, while Wang oversees the development of the exchange’s technology.

Although establishing a board of directors is a step toward conventional corporate governance, some experts express concerns regarding the board’s structure. According to Austin Campbell, a consultant for blockchain companies, most board members are corporate insiders, which raises the possibility of opposition to external supervision. Campbell also draws attention to the lack of independent participants with substantial backgrounds in compliance or regulated financial risk.

Navigating Legal Challenges

Binance’s restructuring efforts come in the wake of legal troubles, with founder Changpeng Zhao facing sentencing for alleged money laundering and sanctions violations. The exchange’s $4.3 billion settlement with US authorities underscores the gravity of the situation as regulatory pressures continue to mount internationally. Additionally, recent accusations of tax evasion in Nigeria further emphasize the importance of regulatory compliance for cryptocurrency entities operating globally.

Since its inception in China in 2017, Binance has emerged as a dominant force in the crypto exchange arena under Zhao’s stewardship, which a decentralized operational model characterizes. The company has expanded its footprint across diverse regions, with operations headquartered in the UAE for the Middle East and North Africa and in France for its European operations.

Towards Greater Transparency and Accountability

The board’s formation aligns with Binance’s efforts to enhance transparency, accountability, and regulatory compliance, as its agreement with U.S. authorities mandated. The company has pledged to include independent members on its board and establish dedicated compliance and audit committees, underscoring its commitment to robust governance practices. Teng has indicated his intention to report to the board since December 2023, signaling a commitment to transparency and regulatory compliance.

Simultaneously, former CEO Changpeng Zhao has embarked on a new project, Giggle Academy, focusing on providing free basic education to children across different jurisdictions. Despite stepping down from his role at Binance, Zhao remains active in social impact and education initiatives.