- Binance Labs declares independence from Binance, its parent company.
- The SEC is using multiple lawsuits, including a class action against Binance, to bolster its case in court.
Binance Labs, the venture capital arm of the world’s leading cryptocurrency exchange Binance, has recently announced its independence from its parent company. The move grabs significant attention in the crypto industry.
Under the leadership of CEO Richard Teng, who assumed the role following founder CZ’s legal challenges in the US, Binance quietly spun off its $10 billion venture capital arm earlier this year.
According to the Binance Labs website, “Binance Labs is an independent venture and not part of the Binance Group nor is it involved in any of the businesses operated by the Binance Group (including but not limited to the Binance cryptocurrency exchange).”
(Source: Binance Labs)
Binance Labs is authorized to use the Binance trademark but has no other connection with the Binance Group. Further, employees of Binance Labs now operate under separate contracts and systems compared to those of Binance crypto exchange staff.
However, amidst these changes, Binance faces ongoing legal challenges, including a lawsuit filed by the US. Securities and Exchange Commission. Despite efforts by Binance, Binance.US, and CEO Zhao to dismiss the lawsuit, the SEC continues to pursue legal action. In a bid to strengthen its case, the SEC is filing supplemental authority and leveraging various lawsuits. That includes a class action against Binance, to bolster its arguments in court.
