Posted 2 months ago | by Catoshi Nakamoto
Binance is continuing its hiring spree of past regulators with two recent additions to its compliance and investigations team.
Binance has announced that it has hired two IRS agents familiar with blockchain to help it improve compliance at its exchange. The hires are part of a larger push to reform the company’s reputation from a decentralized exchange and business to a centralized registered legal trading entity.
In a press release, Binance stated it has appointed former IRS special agent Tigran Gambaryan as VP of global intelligence and investigations, and another special agent, Matthew Price, who will take the helm as the company’s senior director of investigations. It’s notable that Gambaryan worked on the — Silk Road investigation, BTC-e bitcoin exchange case, and the Mt. Gox hack.
Like Gambaryan, Price also has a lot of experience in tracing illicit digital currency transactions and recently was instrumental in the IRS’s investigation into Helix, atumbler on the darknet.
Binance’s Chief Security Officer Jimmy Su will lead the company’s compliance team along with Tigran who will lead an audit and investigations team that will focus on internal and external investigations to prevent threats and financial losses. Binance stated that its compliance team will continue working closely with law enforcement agencies and regulators around the world.
As Bitboy Crypto has previously reported, Binance has been on a hiring frenzy when it comes to former regulators.
Binance International seems to be increasing its expertise in tracking suspicious transactions recently announcing that it has brought on former Europol Darkweb specialist Nils Andersen-Röed to strengthen its investigations and audit team.
“Nils’ appointment strengthens an already strong team of security specialists working hard to make sure Binance remains the most secure crypto ecosystem around,” Binance said in a statement.
“After many years working in law enforcement I am excited to tackle new challenges in the Binance audit and investigations team,” Andersen-Röed said. “Over the years I have learned that simply arresting criminals isn’t enough to combat crime, you also need to take a broader look at the whole ecosystem in which they are operating.”
As Bitboy Crypto previously reported before the exchange hired Nils, in July, Binance International added Jonathan Farnell, formerly of eToro, as the exchange’s new director of compliance with plans to double its compliance team. Farnell previously headed eToro Money UK as director of compliance, and he served as head of compliance at eToroX.
Here in the U.S. Binance’s affiliate Binance.US just announced Brian Shroder a former Uber executive as its new president and brought aboard a new interim CEO, Joshua Sroge following the resignation of former regulator Brian Brooks who led the company for a few months. Shroder will oversee strategy, execution, fundraising, business and corporate development for Binance.US. As president, Shroder will manage other aspects of the business, including legal, human resources, and product and technology functions, according to a press release.
Amid regulatory scrutiny for the overall international business, Binance.US has also hired a former regulator Manuel Alvarez as its Chief Administrator. Alvarez will report to Sroge the current CEO of Binance.US.
Besides appointing key figures, Binance has further recently announced a mandatory KYC (Know Your Customer) for all users on its exchange, these are all signs that Binance is shifting its views and business.
Binance faces investigation in numerous countries including the U.S. by the IRS, DOJ, and Commodity Futures Trading Commission (CFTC) who is reportedly investigating Binance alleging that the exchange was involved with “insider trading” and market manipulation. Further, as per a Bloomberg report, sources told the news agency that the IRS probe is not only targeting Binance users but potentially employees of the company as well.
Binance’s problems expand far beyond just the U.S. though. In a previous report, Bitboy Crypto covered Binance initially being targeted by the — U.S., UK, Singapore, Thailand, Canada, Japan, India, and even the Cayman Islands where Binance is incorporated. An ongoing list targeting the exchange includes — Italy, Lithuania, Hong Kong, Poland, and Malta, i.e. Binance’s former home before it was kicked out in 2020 by the Malta Financial Services Authority (MFSA). Although Binance doesn’t have an official operation headquarters, and it’s operated in a decentralized manner with no one location being it home. It’s worth mentioning that Singapore was where the company had known offices.
Binance’s CEO Changpeng “CZ” Zhao recently had a moment of clarity expressing that the company needs a “centralized entity to work well with regulators.” While that may help relieve attention that the company doesn’t have a clear headquarters, it’s very doubtful this will help the exchange ward off regulators looking into insider trading claims.
“We have come to realize that we need a centralized entity to work well with regulators,” CZ stated in an interview with the South China Morning Post, adding, the company needs to have “clear records” of stakeholder ownership and risk management.
CZ has not yet confirmed a location where the exchange’s HQ could be located or when Binance would seek to establish the building. However, CZ seems to be attempting to remold his business to being more regulator-friendly by appointing some of the best cyber investigators in the world. So, Binance HQ will likely be established in the near future to “work with regulators.”
Bitcoin is currently trading at [FIAT: $43,830.53] UP +5.8% in the last 24 hours according to Coingecko at the time of this report.