Binance Appoints New Compliance-Focused And Money Laundering Reporting Officer Amid Growing Regulatory Heat, Lawsuits

Binance has announced the appointment of a new Deputy Chief Compliance Officer (CCO) and Global Money Laundering Reporting Officer (GMLRO) at a time when the world’s largest cryptocurrency exchange grapples with regulatory challenges from several law enforcement officers worldwide over compliance issues.

Binance Beefs Up Compliance Team

Binance has named a new compliance-focused officer, Kristen Hecht.

Hecht, who previously held the position of Global Head of Corporate Compliance, will be deputy chief compliance and global money laundering reporting officer at Binance after joining the exchange eight months ago.

Hecht brings 17 years of experience in financial crime compliance. Earlier in her career, Hecht was the Senior Policy Advisor for the U.S. Department of the Treasury. She went on to become the Chief Compliance Officer at Meta’s crypto wallet project, Novi Financial.

“With her seasoned background, she understands the importance of collaborating with governments and international organizations that are critical to making sustainable advancements and fighting financial crime,” Binance Chief Compliance Officer Noah Perlman stated.

Hecht’s appointment comes after a string of top legal and compliance executives quit Binance allegedly due to the strain of dealing with numerous probes into the exchange’s practices. Binance has firmly rejected these claims.

Now, as the Deputy CCO at Binance, Hecht will work closely with Perlman to improve the exchange’s compliance strategy.  And in the role of GMLRO, she will supervise money laundering units, helping them to identify and mitigate financial crime. Hecht intends to “proactively engage” with regulators, intergovernmental organizations, and industry bodies to help devise compliance programs. 

“As an organization that is obsessed with its users and has come a long way toward building a best-in-class compliance program comparable to global financial institutions, I hope to raise further awareness with regulatory and industry partners about the crypto industry to build trust and collaborate in this fast-developing space.”

Binance’s Regulatory Issues

The Hecht appointment comes as Binance continues to be in hot waters with regulators globally, including in the United States, France, Germany, and the Netherlands.

The U.S. Commodity Futures Trading Commission (CFTC) sued Binance and its founder Changpeng Zhao in March on allegations the company deliberately offered unregistered crypto derivatives products to U.S. investors against federal laws. Additionally, the U.S. Securities and Exchange Commission (SEC) also struck the exchange and Zhao with 13 charges.

The United States Department of Justice is also reportedly contemplating charging Binance with fraud but hesitating due to concerns about a potential indictment triggering a bank run on the exchange similar to what happened with Sam Bankman-Fried’s FTX back in November 2022.

In Europe, France’s financial judicial investigation service is investigating Binance for “acts of aggravated money laundering”. The exchange has withdrawn its request for German regulatory approval and ceased its crypto operations in the Netherlands after failing to secure a regulatory nod.