Newly appointed Binance CEO Richard Teng sought to reassure customers and investors regarding the crypto exchange’s robust financial position even after agreeing to massive U.S. penalties this week. Teng emphasized Binance’s sound balance sheet in response to analysis suggesting its $4.3 billion DOJ fine will prove manageable.
Teng posted on Twitter highlighting Binance’s stable commercial operations, including substantial revenue and profits, given the modest fees charged to users. He also noted the exchange maintains a debt-free capital structure with adequate expense controls.
Teng’s comment comes amidst Binance drama
The public comments followed former Binance CEO Changpeng Zhao pleading guilty to violating U.S. anti-money laundering laws earlier this week. The plea bargain requires Binance to pay $4.3 billion in fines related to long-standing regulatory investigations.
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Some commentators expressed concerns about whether even the crypto sector’s largest exchange could withstand such a monumental financial hit.
Coinbase executive Conor Grogan added support to that argument in a tweet. He outlined how Binance likely holds enough easily liquidated resources to cover the full DOJ tab without touching other assets.
Per Grogan’s analysis, Binance currently controls at least $6.35 billion in corporate crypto reserves and cash, excluding undisplayed funds in certain wallets. With over $3 billion in stablecoins alone, a heavy capital raise seems avoidable. Teng’s remarks reaffirmed the robust position as the exchange goes through a fair share of changes.