Key Takeaways
- This move will increase the company’s full-time compliance staff to 645
- Binance has made several strategic hires, including Todd McElduff, the new Enterprise Compliance Director.
Leading crypto exchange, Binance, is set to significantly boost its compliance efforts, planning to expand its compliance team by 34% by the end of 2024. This move will increase the company’s full-time compliance staff to 645, with a total compliance-focused workforce, including contractors, surpassing 1,000.
The initiative comes after Binance’s high-profile $4.3 billion settlement with U.S. regulators in 2023 for violations of the Bank Secrecy Act (BSA). As part of the settlement, Binance’s founder, Changpeng Zhao, stepped down as CEO, with Richard Teng, a former regulator, taking over the role.
Binance, which admitted that it allowed transactions with Hamas and other terrorist groups on the platform, was charged with three counts, including anti-money laundering, operating an unlicensed money transmitting business and violating US sanctions. Prosecutors noted Binance’s failure to report “well over 100,000 suspicious transactions” linked to illicit activities, underscoring the exchange’s role as a hub for financial crime on an “unprecedented scale.”
They further accused Zhao of exhibiting a “deliberate disregard” for the exchange’s legal responsibilities, portraying him as a calculating opportunist who prioritized profit over compliance.
Teng has since been leading the company’s efforts to transform Binance into a model of regulatory compliance for the global cryptocurrency industry.
To strengthen its compliance operations, Binance has made several strategic hires, including Todd McElduff, the new Enterprise Compliance Director. McElduff, who previously worked at PayPal and Morgan Stanley, will now lead Binance’s collaboration with global law enforcement. Additionally, Céline Inial and Caner Akyürek have been appointed as special investigations specialists for France and Turkey, respectively, bringing nearly 20 years of law enforcement experience each.
Binance’s compliance efforts have been ramped up since 2023, with the exchange increasing its compliance spending by 36%. The platform has focused on attracting talent from traditional finance and government agencies, including notable hires like Tigran Gambaryan, a former IRS financial crime specialist, who joined Binance in 2021.
