Binance Labs Spins Off from Binance Group

Despite the reorganization, Binance Labs continues its operations, investing in projects like Babylon and providing incubation for various initiatives.

Binance Labs, the foremost cryptocurrency exchange by trading volume globally, seems to have been spun off, according to the website of the venture capital and incubation division.

This action took place earlier this year, signifying a noteworthy progression throughout the four-month tenure of CEO Richard Teng.

The website of Binance Labs now unequivocally declares its autonomous operation, distinct from that of the Binance Group, and its non-involvement in any of its activities, including the cryptocurrency exchange.

Internet Archive records indicate that the modification occurred between February 19 and February 24.

Staff contracts at Binance Labs are now distinct from those of employees at the cryptocurrency exchange, mirroring the organizational structure of the BNB Chain initiative, which Binance backs. Notwithstanding these modifications, slow-moving operational shifts are expected.

While the precise motivations for this reorganization are unknown, Alex Odagiu, Investment Director at Binance Labs, emphasized that the organization has severed ties with the Binance group. Nevertheless, the licensing agreement to utilize the Binance trademark will be upheld.

Notwithstanding these alterations to its structure, Binance Labs continues to conduct operations.

The platform invested in Babylon, a Bitcoin staking protocol that introduced native BTC staking for PoS blockchains, last month. This platform empowers users to stake Bitcoin and generate returns without intermediary services such as third-party custody, bridge solutions, or packaging.

Binance Labs’ Investment and Incubation

Furthermore, Binance Labs provided incubation for the following three projects: NFPrompt, an AI-driven User Generated Content (UGC) platform for Web3 creators; Ethena Labs, an organization that specializes in Ethereum derivatives; and Shogu.fi, a protocol that optimizes trader extractable value (TEV) via intent-driven processes.

After agreeing to pay over $4 billion in penalties to U.S. regulatory agencies, one of the largest settlements in U.S. corporate history, Binance has been subject to intense scrutiny since November.

The ongoing dispute concerning the motion to dismiss the Securities and Exchange Commission (SEC) lawsuit against Binance, Binance.US, and its former CEO CZ (Changpeng Zhao) has prevented a resolution.

Supplementary authority obtained from multiple lawsuits, including a class action against Binance, bolsters the SEC’s position to prevent the dismissal of the lawsuit.

Nevertheless, a recent order from Judge Amy Berman Jackson prohibited the court from deliberating or providing further details regarding the supplemental authority that the parties invoked in their arguments.

CZ resigned shortly after entering a guilty plea to intentionally violating the Bank Secrecy Act after the litigation. In the same month, Richard Teng, who previously served as Binance’s Global Head of Regional Markets, was appointed CEO.