According to a statement by Bloomberg, Binance Labs, the massive investment arm of the world’s largest crypto exchange Binance, has separated from the company and taken on an independent structure. As a result of this event, the ties between Binance Labs and Binance have been severed.
Crypto Exchange Binance Spins Off Binance Labs
During the volatile period in Bitcoin and other cryptocurrencies, a significant development occurred on the Binance front. An important development took place on the Binance side. Amidst increasing regulatory scrutiny and an ongoing lawsuit against the US Securities and Exchange Commission (SEC), Binance made a critical decision.
According to an announcement by Bloomberg on March 15th, Binance spun off its $10 billion venture capital arm, Binance Labs, earlier this year.
After Changpeng “CZ” Zhao resigned as CEO of Binance last year, one of the biggest decisions taken during the four-month tenure of the new executive chairman, Richard Teng, was this separation.
Binance Labs is an independent venture and is not part of the Binance Group and is not included in any business operated by the Binance Group (including but not limited to the Binance cryptocurrency exchange). Binance Labs has a license to use Binance’s trademark, but other than that, it has no other relationship with the Binance Group.
On the other hand, according to a statement by a Binance Labs spokesperson, Binance Labs has also ended some of its existing connections with the Binance group.
In a statement by a spokesperson on the matter, it was noted that Binance Labs employees will now have separate contracts compared to Binance cryptocurrency exchange personnel and their systems will operate separately. The move is said to resemble the process experienced on the Binance-backed blockchain BNB Chain.
Binance Labs Investment Director Alex said:
Our primary goal is to identify projects and invest in them, and this has not changed. Since the establishment of Binance Labs in 2018, our focus as a team has mostly been this.
Binance Discusses Dismissal of Case with SEC
While all this is happening, there are no new indications regarding Binance, Binance.US, and CZ’s request to dismiss the SEC lawsuit. The SEC is still advancing the process regarding additional authority for different lawsuits, including a class action against Binance, to gain an advantage in the case and to reject the dismissal issue.
Meanwhile, according to a recent decision by Judge Amy Berman Jackson, the court will not reconsider the additional authority or authorize new arguments for the parties.
