Binance Labs, valued at $10 billion, has discreetly separated from Binance, retaining its licensing rights to the Binance brand. The move, which took place earlier this year, marks a significant shift during CEO Richard Teng’s four-month tenure.
According to updates on Binance Labs’ website, the venture capital and incubation arm now operates independently, emphasizing its detachment from the broader Binance Group. Staff contracts at Binance Labs have been revamped, echoing the structure of the Binance-backed BNB Chain project. Despite these alterations, minimal operational disruptions are expected.
Binance Labs Still Active
Despite the restructuring, Binance Labs remains active. Notably, it recently invested in Babylon, a Bitcoin staking protocol enabling native BTC staking for PoS blockchains. This protocol facilitates BTC staking and yield generation without relying on third-party custody services or bridge solutions.
Moreover, Binance Labs has incubated three projects: Ethena Labs, focusing 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.
Binance’s restructuring comes amidst ongoing legal battles. Since November, the exchange has faced heightened scrutiny, culminating in a settlement agreement with U.S. regulatory agencies, amounting to over $4 billion, one of the largest in U.S. corporate history.
The Securities and Exchange Commission (SEC) lawsuit against Binance, Binance.US, and its former CEO CZ (Changpeng Zhao) remains unresolved. The SEC is bolstering its case with supplemental authority from various lawsuits, including a class action against Binance.
Following the legal turmoil, CZ resigned after pleading guilty to willfully violating the Bank Secrecy Act. Richard Teng, Binance’s former Global Head of Regional Markets, assumed the CEO role in the aftermath.
As Binance navigates through these legal challenges and organizational changes, the crypto community closely watches for further developments.
