Binance, the worldās leading crypto exchange by trading volume, appears to have spun off its venture capital and incubation arm, Binance Labs, as indicated on the latterās website.
This move occurred earlier this year, marking a significant development during CEO Richard Tengās four-month tenure.
Binance Labsās website now clearly states that it operates independently and is not a part of the Binance Group, nor is it involved in any of the activities conducted by the latter, including the cryptocurrency exchange.
Based on records from the Internet Archive, the change appears to have occurred between February 19 and February 24.
Contracts for staff at Binance Labs are now different from those of employees at the crypto exchange, mirroring the structure of the Binance-backed BNB Chain project. Despite these adjustments, minimal operational changes are anticipated.
Although the reasons behind this restructuring remain undisclosed, Alex Odagiu, Investment Director at Binance Labs, emphasized that the entity has severed its ties with the broader Binance group. However, it will maintain its licensing agreement to utilize the Binance brand.
Despite these organizational changes, Binance Labs remains active in its operations. Last month, the platform invested in Babylon, a Bitcoin staking protocol pioneering native BTC staking for PoS blockchains. It enables users to stake BTC and earn yields without relying on third-party custody, bridge solutions, or wrapping services.
Additionally, Binance Labs incubated three projects: Ethena Labs, which focuses on Ethereum derivatives; NFPrompt, an AI-driven User Generated Content (UGC) platform for Web3 creators; and Shogu.fi, a protocol optimizing trader extractable value (TEV) through intent-driven processes.
Since November, Binance has faced intense scrutiny after agreeing to pay over $4 billion in fines to U.S. regulatory agencies, one of the largest settlements in U.S. corporate history.
The Securities and Exchange Commission (SEC) lawsuit against Binance, Binance.US, and its then-CEO CZ (Changpeng Zhao) remains unresolved, with the motion to dismiss the lawsuit still contested.
The SEC is strengthening its case with supplemental authority from various lawsuits, including a class action against Binance, to deny the dismissal of the lawsuit. However, Judge Amy Berman Jackson recently ordered the court not to entertain discussions or elaborate on the supplemental authority presented by the parties in their arguments.
Following the lawsuit, CZ resigned shortly after pleading guilty to willfully violating the Bank Secrecy Act. Richard Teng, Binanceās former Global Head of Regional Markets, assumed the CEO role in the same month.
The post Binance Labs Quietly Transitions to Independent Entity From Binance appeared first on CryptoPotato.
This move occurred earlier this year, marking a significant development during CEO Richard Tengās four-month tenure.
Binance Labs Distances From Binance
Binance Labsās website now clearly states that it operates independently and is not a part of the Binance Group, nor is it involved in any of the activities conducted by the latter, including the cryptocurrency exchange.
Based on records from the Internet Archive, the change appears to have occurred between February 19 and February 24.
Contracts for staff at Binance Labs are now different from those of employees at the crypto exchange, mirroring the structure of the Binance-backed BNB Chain project. Despite these adjustments, minimal operational changes are anticipated.
Although the reasons behind this restructuring remain undisclosed, Alex Odagiu, Investment Director at Binance Labs, emphasized that the entity has severed its ties with the broader Binance group. However, it will maintain its licensing agreement to utilize the Binance brand.
Despite these organizational changes, Binance Labs remains active in its operations. Last month, the platform invested in Babylon, a Bitcoin staking protocol pioneering native BTC staking for PoS blockchains. It enables users to stake BTC and earn yields without relying on third-party custody, bridge solutions, or wrapping services.
Additionally, Binance Labs incubated three projects: Ethena Labs, which focuses on Ethereum derivatives; NFPrompt, an AI-driven User Generated Content (UGC) platform for Web3 creators; and Shogu.fi, a protocol optimizing trader extractable value (TEV) through intent-driven processes.
Binanceās Legal Woes Continue
Since November, Binance has faced intense scrutiny after agreeing to pay over $4 billion in fines to U.S. regulatory agencies, one of the largest settlements in U.S. corporate history.
The Securities and Exchange Commission (SEC) lawsuit against Binance, Binance.US, and its then-CEO CZ (Changpeng Zhao) remains unresolved, with the motion to dismiss the lawsuit still contested.
The SEC is strengthening its case with supplemental authority from various lawsuits, including a class action against Binance, to deny the dismissal of the lawsuit. However, Judge Amy Berman Jackson recently ordered the court not to entertain discussions or elaborate on the supplemental authority presented by the parties in their arguments.
Following the lawsuit, CZ resigned shortly after pleading guilty to willfully violating the Bank Secrecy Act. Richard Teng, Binanceās former Global Head of Regional Markets, assumed the CEO role in the same month.
The post Binance Labs Quietly Transitions to Independent Entity From Binance appeared first on CryptoPotato.
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