Highlights:
- Zhao may sell his stake in Binance but remains a major shareholder in the exchange.
- Binance’s new CEO, Richard Teng, strengthens compliance and leads the company’s next phase.
- Binance’s Proof of Reserves celebrates two years, boosting user trust and setting transparency standards.
Changpeng Zhao is seeking to sell his controlling stake in a crypto exchange. After settling with U.S. authorities, Zhao stepped down as CEO but remains a major stakeholder. He holds roughly 90% of the Binance stake.
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Zhao made the comments during an interview with Bloomberg. He noted receiving some offers and indicated that he might consider some of them. Zhao added that he is happy to review any offer. Binance was founded by Zhao, also known as ‘CZ’, in 2017. Under his leadership, Binance flourished to become one of the world’s largest crypto exchanges.
Binance founder open to offers for controlling stake but no sale yet
In a recent Bloomberg interview, Binance Exchange founder Changpeng Zhao said he has received offers to sell his controlling stake in the exchange, which makes up most of his net worth, though he didn’t…
— CoinNess Global (@CoinnessGL) November 7, 2024
New CEO Leads Binance Forward
After Zhao’s exit from day-to-day operations, Binance appointed Richard Teng as CEO. Teng is a former regulator in Abu Dhabi and has considerable industry experience. The appointment shows Binance’s ongoing evolution and commitment to regulatory compliance.
The transition marks a significant step for Binance. Teng’s regulatory background may help Binance navigate growing scrutiny from authorities worldwide. He has already implemented several new policies, reinforcing Binance’s commitment to compliance and transparency.
Zhao’s shift to a passive shareholder role highlights the company’s changing leadership. He pointed out that he is still with Binance, but he thinks it is time to give some space to the new team.
Binance Celebrates Two Years of Proof of Reserves
Today, Binance has marked two years since it rolled out Proof of Reserves (PoR), a system intended to verify user asset backing. This transparency effort was launched in response to queries over the financial health of some crypto exchanges. To address those issues, PoR guarantees that users’ funds will be fully backed and safe.
Initially, Merkle tree cryptography was used to verify assets in the PoR system. In early 2023, Binance upgraded the system with zk-SNARK technology that protects data privacy and allows for asset verification. Using this innovation, Binance can confirm asset backing without revealing specific user balances.
Data on user liabilities are now incorporated into Binance’s PoR system, offering a more complete picture of the company’s financial responsibilities. This puts a high bar of transparency, especially for exchanges providing lending. With PoR, Binance can build up user trust and secure assets.
Zhao’s Future Plans Beyond Binance
After completing his prison time, Zhao has since turned his focus to new pursuits like artificial intelligence, biotech, and nonprofit projects. Zhao’s current work includes an initiative called Giggle Academy, a nonprofit venture focused on education and technology.
CZ is continuing to invest in areas that are consistent with his plan for the future. He is interested in AI because he believes it can disrupt industries the way blockchain technology has. This journey beyond Binance for Zhao shows he is looking for impactful projects beyond crypto. However, his legacy at Binance continues and his new projects are in sync with the future of innovation and positive change with technology.
Binance announces that its Reserve Proof System, established two years ago, now encompasses 34 different tokens, with total assets exceeding $120 billion.
— Blockcast AI (@blockcastai) November 7, 2024
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