Crypto News – Binance Compliance Chief Urges Support After $4.3 Billion Fine and CZ’s Imprisonment

Crypto News – Binance Compliance Officer Requests Support Amid $4.3 Billion Fine and CZ’s Detention

Crypto News- Binance, the world’s largest cryptocurrency exchange, is urging the regulatory community for support after its founder, Changpeng Zhao (CZ), was jailed and the company agreed to pay $4.3 billion in penalties. This was the key message delivered by Noah Perlman, Binance’s Chief Compliance Officer, during a podcast with Ari Redbord from TRM Labs on Wednesday.

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Perlman

Addressing Past Issues

Perlman acknowledged the company’s past troubles, including the Nigerian detention of Binance executive Tigran Gambaryan and their ongoing cooperation with law enforcement authorities. “We’ve had issues. We’ve resolved those issues,” Perlman remarked. “We’ve turned the page.”

Leadership Changes and Legal Challenges

Following CZ’s resignation in November, Binance CEO Richard Teng took over, facing significant challenges. Zhao pleaded guilty to violating US banking laws and was sentenced to four months in prison in April. US federal agencies criticized Binance for its disregard of anti-money laundering (AML) and know-your-customer (KYC) rules, depicting the company as operating without proper regulation.

As part of its settlement, Binance agreed to embed two independent monitors within the company to oversee and reform its AML and KYC practices.

Reinforcing Compliance

When Perlman joined Binance in January 2023, he was already aware of the federal grand jury investigation into the company’s lax AML practices. “It wasn’t a surprise to me that we were, as a company, facing those issues,” Perlman noted.

Perlman, a Columbia University-trained lawyer, brought extensive experience in financial crimes and compliance from his previous roles at Morgan Stanley and Gemini. He was part of a team of compliance veterans recruited to help steer Binance through its legal woes.

Nigerian Controversy

Tigran Gambaryan, another key compliance figure at Binance, faced serious challenges in Nigeria. He was detained on charges of money laundering and tax evasion shortly after being dispatched to address allegations of the exchange facilitating illicit transactions and manipulation of the naira.

Gambaryan, who denied the charges, is currently awaiting trial while suffering from health issues, including malaria and pneumonia. Perlman described the situation as “Kafkaesque,” expressing deep frustration over the detention.

Contributions to Law Enforcement

Despite these challenges, Perlman highlighted Binance’s active role in aiding law enforcement, including counterterrorism efforts and preventing kidnappings. He referenced a notable case involving the arrest of an alleged ISIS recruiter in Istanbul in June 2023, showcasing Binance’s contribution to global security.

“We’re super proud of our work on a counterterrorism case that led to arrests across the world,” Perlman shared, underlining the positive impact of Binance’s compliance efforts.

As Binance navigates through these turbulent times, Perlman’s message is clear: the exchange is committed to compliance and seeks the support of the regulatory community to continue its operations and contributions to global financial security.

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