New Binance CEO says company fundamentals remain strong despite $4.3b DoJ fine

Newly appointed Binance CEO Richard Teng has reiterated his confidence in the exchange’s financial health even after agreeing to a massive $4.3 billion penalty from U.S. authorities.

In response to comments from Conor Grogan, a Coinbase executive, praising Binance’s latest proof-of-reserves report on Nov. 22, Teng asserted that platform fundamentals stay robust across trading volumes, expenses, revenues, and profits.

Grogan observes that Binance possesses significant crypto asset reserves, with $6.35 billion verified in its reserves report. Additional unaccounted for cash and wallet balances further reinforce assets.

The Coinbase director continued to endorse Binance, adding that though the U.S. Department of Justice (DOJ) fine is substantial, deferred payment options – believed to be around 15 months – combined with the exchange’s capitalization suggest the penalty can be absorbed without liquidating positions or affecting user holdings.

In a note to customers on Nov. 22, Binance said U.S. regulators explicitly did not implicate the exchange in misappropriating customer funds or manipulating prices. However, as the exchange “turns a new page,” founder Changpeng Zhao has stepped down as CEO but maintains indirect oversight as a majority shareholder. Richard Teng, the former Global Head of Regional Markets, takes over from Zhao.

Binance also emphasized that despite settling U.S. investigations, it will continue upholding core values around customer asset security. With the firm on steady financial footing per multiple audits, supporters believe Binance retains operational viability, barring further legal shocks.

On Nov. 21, Changpeng Zhao resigned from his position and pleaded guilty to violating U.S. anti-money laundering laws. As part of a $4.3 billion settlement, Zhao also agreed to pay $50 million.

Bitcoin prices pulled back following this news but continue to maintain an uptrend, as visible in the daily chart. The immediate resistance level remains at around $38,000.