This week, Binance and its CEO, Changpeng Zhao, acknowledged breaches of anti-money laundering and U.S. sanctions laws.
As part of a settlement with the Justice and Treasury Departments and the Commodity Futures Trading Commission, Zhao will step down as CEO, contributing $50 million to the resolution in addition to Binance’s $4.3 billion payment.
This development comes just a week after famous investor Kevin O’Leary predicted to Benzinga that Binance would soon follow FTX. In a follow-up conversation on Tuesday, O’Leary expressed his lack of surprise, highlighting the remaining challenge due to Zhao’s continued role as a shareholder.
Pictured: Anthony Pompliano, left, moderates a keynote featuring Kevin O’Leary, right, at Benzinga’s Fintech Deal Day & Awards on November 13, 2023.
“If you’re an institution, you can’t go to FTX and Binance. You can’t even go to Coinbase because of its litigation with the SEC.”
Despite the scarcity of fully compliant alternatives, O’Leary identified the relatively lesser-known M2 Exchange as a top choice. M2 was recently granted the ability to offer custody and multilateral trading services in the UAE, which caught his attention.
“Abu Dhabi is the capital of capital, and I think something big is about to happen there,” O’Leary said. “I’m leaving soon for the launch of M2, and I think it will take up huge capital. I don’t know if you have a bigger [exchange] emerging that’s completely compliant.”
Why Abu Dhabi?
While some places in the U.S. may grow as capital centers given better policies and diversity of talent, O’Leary isn’t shying away from opportunities abroad.
“In 2010, I left Massachusetts for Florida, and it’s good to see competition building among states like Tennessee, Texas, North Dakota, Oklahoma, and West Virginia.”
Pictured: North Dakota Governor Doug Burgum, left, and Kevin O’Leary, right, stand in support of sustainable innovation via the North Dakota Wonder Fund.
“However, so much is happening in the UAE, Qatar, and Saudi Arabia. If you’re a global investor like me, don’t ignore that. You put in an allocation.”
Further supporting O’Leary’s decisions are the frameworks…
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