Binance Names Yi He Co-CEO to Strengthen Compliance Amid $1B Terrorism Lawsuit

Binance, the world's largest cryptocurrency exchange, has appointed co-founder Yi He as co-CEO, joining Richard Teng in a dual leadership structure. The move comes as the company continues to navigate regulatory and legal challenges following the criminal conviction and subsequent pardon of its former CEO, Changpeng Zhao. Yi He, who has long been central to Binance's growth, will focus on product development and user initiatives, while Teng will handle legal and regulatory affairs.

Yi He's promotion marks a significant step in Binance's efforts to strengthen its regulatory compliance and rebuild trust with users and authorities.

The exchange emphasized its commitment to transparency and global compliance in a statement, highlighting the need for balanced leadership in an increasingly scrutinized industry. Yi He's role as co-founder and former chief marketing officer underscores her deep involvement in Binance's strategic direction.

The leadership change occurs amid a $1 billion civil lawsuit brought by victims of the October 7, 2023 Hamas attack, alleging that Binance facilitated illicit transactions to terrorist groups including Hamas and Hezbollah. The lawsuit, filed in North Dakota, accuses Binance of operating with weak compliance controls and enabling off-chain transactions that allowed illicit funds to move undetected. The legal action is part of broader regulatory pressures facing the crypto industry.

Leadership Restructuring and Strategic Focus

Binance's decision to name Yi He co-CEO reflects a strategic shift aimed at stabilizing operations and accelerating growth in a challenging environment. Richard Teng, the company's CEO since late 2023, brings experience from traditional financial regulation to the role, while Yi He focuses on driving innovation and user engagement. The dual leadership model is intended to balance regulatory caution with crypto-native agility.

Teng will oversee legal compliance and administrative responsibilities, leveraging his background in Singapore's financial markets to navigate complex global regulations. Yi He will lead efforts in product development, marketing, and customer experience, emphasizing Binance's mission to expand its user base and improve accessibility. The division of labor aligns with Binance's goal of becoming the most trusted and regulated exchange in the world.

Legal and Regulatory Challenges

The lawsuit against Binance adds another layer of complexity to its leadership restructuring. The plaintiffs allege that the exchange processed over $1 billion in transactions linked to sanctioned entities, including the Iranian Revolutionary Guard Corps and Hamas, through weak anti-money laundering (AML) controls. The case, which seeks triple damages under U.S. anti-terrorism statutes, could result in a $3 billion judgment if upheld.

This legal action builds on Binance's $4.3 billion settlement with U.S. authorities in 2023, which stemmed from similar allegations of inadequate compliance. The new lawsuit, however, focuses on direct liability for terrorism financing, a more severe charge than the regulatory violations previously addressed. The case could set a precedent for how courts define platform responsibility in the digital asset space.

Implications for the Crypto Industry

Yi He's appointment signals Binance's intent to move beyond past controversies and position itself for long-term stability. As one of the few women in top crypto leadership roles, her elevation also highlights growing diversity in the sector. Yi He has publicly stated that her professional contributions have often been overshadowed by her personal life, particularly her relationship with CZ. She emphasized that her leadership at Binance is independent and grounded in her role as a co-founder.

For the broader cryptocurrency industry, Binance's leadership shift may influence how exchanges manage regulatory risk and expand into new markets. The dual-CEO model combines traditional finance experience with crypto-native innovation, a strategy that could become more common as regulators demand higher compliance standards. Yi He's focus on user growth and product innovation aligns with Binance's vision to become the preferred platform for global digital asset users.

What This Means for Investors

Investors are likely watching Binance's leadership changes closely, as the company remains the dominant player in the crypto space despite its legal challenges. The appointment of Yi He as co-CEO could signal a return to stability and innovation, which may help restore investor confidence. Binance has also emphasized its commitment to financial freedom and Web3 infrastructure, which could attract new users and partnerships.

The ongoing lawsuit and regulatory scrutiny, however, present risks for Binance's market position. If the civil case proceeds to trial, the company may face additional reputational and financial damage. For now, the leadership transition represents a calculated move to navigate uncertainty and reinforce Binance's long-term strategy in an evolving industry.