In an attempt to bolster its battlefront against potential fraud charges by U.S regulators, the renowned cryptocurrency exchange Binance recently announced the appointment of Kristen Hecht as its new deputy chief compliance and global money laundering reporting officer. The role, newly minted, will see Hecht supervising both key areas as the storm continues to gather around Binance’s practices.
Hecht, a seasoned player in the field, is a known personality within Binance. Her impressive résumé includes serving as the global head of corporate compliance at the same exchange for the eight months preceding this appointment, as well as holding the position of chief compliance officer at Meta’s crypto wallet project, Novi Financial, earlier. She also boasts experience as a senior policy advisor at the U.S. Department of the Treasury.
Considering her wealth of experience, Hecht’s primary focus in this fresh role will be orchestrating the company’s compliance program and liaising with regulators, intergovernmental organizations, and industry bodies. She also has the added responsibility of closely collaborating with Noah Perlman, who will be stepping into her shoes to take on the role of Chief Compliance Officer.
Contextually, this strategic move emerges in the wake of an intensified regulatory spotlight focused on Binance. Just this past March, the U.S. Commodity Futures Trading Commission (CFTC) initiated legal proceedings against Binance and its CEO, citing allegations of knowingly offering unregistered crypto derivatives products in the U.S, an act that goes against federal law. A few months later in June, the spotlight only grew brighter, with the Securities and Exchange Commission (SEC) bringing the exchange to court over alleged violations of federal securities laws.
This week brought additional fuel to the fire, with speculation rife that the U.S. Department of Justice officials are potentially mulling over fraud charges against Binance. It’s suggested that while fines and deferred or non-prosecution may be the eventual course of action, this appears to be an attempt to avoid any unmanageable disruption to the entire crypto industry and the potential for a bank run. Regardless, it’s clear that Binance’s next steps under this new leadership will be closely observed by regulators and the global crypto community alike.
Source: Coindesk
