TLDR:
- Binance has separated from its venture capital arm, Binance Labs
- The decision to spin off Binance Labs comes amid an SEC crackdown and leadership changes at the crypto exchange
Binance, one of the leading crypto exchanges globally, has quietly spun off its venture capital arm, Binance Labs, as an independent entity. The move comes in the midst of regulatory actions and changes in leadership at the exchange.
The $10 billion venture unit, Binance Labs, now operates independently from the Binance Group. Despite being licensed to use its trademark, the firm states that it has no other relationship with Binance Group. The spinoff took place earlier this year, with Binance Labs now functioning as an independent business unit with a separate staff contract.
Since its establishment in 2018, Binance has been the largest crypto exchange by trading volume. However, the exchange has faced scrutiny from regulatory authorities due to its decentralized structure and unclear headquarters location. Last year, Binance settled a $4.3 billion lawsuit with the U.S. Department of Justice for violating the U.S. Bank Secrecy Act, marking one of the largest corporate settlements in U.S. history.
Following CEO Changpeng Zhao’s step down and legal troubles, Richard Teng has taken over as Binance’s CEO. The decision to detach Binance Labs from the parent company reflects significant changes under Teng’s leadership.
