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Grant Martin, the former Chief Compliance and Ethics Officer at the Federal Reserve Bank of New York, is joining the board of Binance.US, the crypto exchange announced in a Tuesday blog post.
Former NY Fed Official Grant Martin Hired By Binance.US
According to the company’s announcement, Martin worked at the Fed for over 30 years, serving in his aforementioned role from 2005 to 2022.
We are proud to welcome Martin C. Grant, former @NewYorkFed Chief Compliance & Ethics Officer, to the https://t.co/AZwoBOh0gq board.
With over three decades of regulatory, legal, and compliance experience in government and the digital assets industry, Mr. Grant will continue to… pic.twitter.com/LumyL54R14
— Binance.US 🇺🇸 (@BinanceUS) April 16, 2024
Most recently, Martin was the Global Head of Regulatory Affairs & Integrity at crypto-asset firm JST Digital.
“The addition of a director of Martin’s caliber to the Binance.US Board reflects the strength of our business and demonstrates our commitment to maintaining the highest standards of compliance and integrity,” said Binance.US Interim CEO Norman Reed. “We look forward to benefiting from his expertise and counsel as we continue to navigate the current regulatory environment and position Binance.US for long-term growth and success.”
CZ In Hot Water Amidst Crackdown On Crypto Regulation
The latest addition to the Binance.US board comes just months after the worldwide digital asset exchange found itself in hot water with U.S. regulators.
In November 2023, former global Binance CEO Changpeng Zhao was charged with failing to instill an anti-money laundering program up to par with the Bank Secrecy Act, and subsequently agreed to step down from his role at the crypto exchange.
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
Binance is no longer a baby. It is…
— CZ 🔶 BNB (@cz_binance) November 21, 2023
As part of an agreement with federal authorities, Binance and “CZ” were also ordered to pay $4.3 billion in restitution to cover civil regulatory actions.
What’s Next For Binance?
The hiring of Martin would seemingly help Binance circumvent further regulatory issues, particularly given the former Fed official’s track record with implementing anti-money laundering programs.
“It is an honor to join the Binance.US Board and be part of an organization built from the ground up to connect Americans to the digital asset industry in a safe, responsible, and compliant manner,” said Martin. “The American digital asset industry is at an inflection point, and I am excited to help guide the future of one of the country’s most influential and customer-centric crypto platforms.”
Zhao is currently facing a maximum penalty of ten years in U.S. prison, however, his actual sentence will largely depend on sentencing guidelines and the court’s discretion. His sentencing is currently scheduled for April 30th.
Martin’s appointment to Binance.US could signal an internal shift towards regulatory compliance for the global crypto exchange as they seek to recover public trust following the legal scandal.