Binance Elevates Co-Founder Yi He to Co-CEO as $1B Lawsuit Looms: A Strategic Shift Amid Legal Turmoil

Binance’s leadership reshuffle, promoting co-founder Yi He to Co-CEO alongside Richard Teng, marks a pivotal moment for the exchange as it navigates a monumental $1 billion terrorism financing lawsuit and the complex aftermath of founder Changpeng Zhao's pardon. This move, announced in December 2025, is framed by the company as a step to bolster stability, regulatory focus, and user-centric operations. However, it unfolds against an unprecedented backdrop of legal pressure, including a federal suit alleging the platform facilitated funding for groups like Hamas, and intense political scrutiny following former President Donald Trump's controversial pardon of CZ. The promotion of Yi He, a foundational figure in Binance's history and culture, signals an internal consolidation of power and a clear division of leadership responsibilities as the world's largest cryptocurrency exchange fights to repair its global reputation.

The Dual Leadership Mandate: Teng's Regulation vs. Yi He's Product Vision

Binance’s announcement frames the new co-CEO structure as a strategic division of labor designed to address its most pressing challenges. Richard Teng, who assumed the CEO role following Changpeng Zhao’s resignation in late 2023, will concentrate on legal, regulatory, and administrative responsibilities. His background in regulated traditional finance markets is positioned as critical for steering Binance through its ongoing global compliance overhaul.

Conversely, Yi He will focus on product development, retail operations, and user-oriented initiatives. Her official mandate is to ensure smooth platform operations and customer satisfaction, building on her previous role as chief customer service officer. The company stated that her influence has expanded "from operational oversight to strategic leadership," indicating she will now help shape Binance’s overall direction beyond user interaction. This bifurcation aims to create a balanced leadership approach: one head navigating the treacherous waters of global regulation and litigation, and the other driving innovation and retaining the exchange's massive user base.

The Escalating $1 Billion Legal Battle: Allegations of Facilitating Terror Financing

The leadership change occurs as Binance confronts one of its most severe legal challenges to date. The exchange faces a $1 billion federal lawsuit filed in North Dakota by victims and families of the October 7, 2023 Hamas attack. The suit names Binance, Changpeng Zhao, and another individual, Gunagying “Heina” Chen, as defendants.

The plaintiffs accuse Binance of facilitating funding to terrorist organizations, including Hamas and Hezbollah. The allegations center on claims of weak compliance protocols, the use of off-chain transactions, and the operation of questionable accounts in jurisdictions like Venezuela and Brazil. The lawsuit contends that internal Binance messaging shows company knowledge of suspicious fund flows. This civil trial could set significant precedents regarding the liability of cryptocurrency exchanges for illicit transactions conducted on their platforms.

Yi He has publicly denied these terrorism financing accusations. She has argued that much of the criticism originates from traditional financial sectors and has pointed to past U.S. Treasury Department statements indicating cryptocurrency is rarely used by Hamas for financing. Nonetheless, the lawsuit presents a direct and potentially devastating financial and reputational threat.

The Political Firestorm: CZ's Pardon and Its Aftermath

The legal landscape for Binance is inextricably linked to the political saga surrounding its founder. In early 2025, former President Donald Trump pardoned Changpeng Zhao, overturning the four-month prison sentence CZ received after pleading guilty to charges of failing to maintain an effective anti-money laundering program at Binance.

This pardon proved highly controversial. The U.S. Senate condemned the action in an October 2025 resolution. According to CZ’s lawyer, Teresa Goody Guillén, the pardon resulted from a formal review process by the Justice Department and the White House. Guillén characterized CZ’s case as a compliance failure rather than criminal fraud or money laundering. She also rejected claims of improper connections between Binance and Trump, citing the transparency of blockchain records.

This pardon followed a historic November 2023 settlement where Binance agreed to pay $4.3 billion in penalties, and CZ paid a $50 million fine while resigning as CEO. The pardon, therefore, did not erase the settlement or the underlying admissions but removed CZ's personal criminal liability and sentence. The political fallout continues to cast a long shadow over the company as it seeks to engage with regulators worldwide.

Yi He's Ascent: From OKX Marketer to Binance Co-Founder and Co-CEO

Yi He’s journey to co-CEO underscores her deep roots in the crypto industry and her integral role in building Binance. She entered the sector in 2013 at the exchange OKX (then known as OKCoin), where she worked in marketing and branding. It was during this time that she recruited Changpeng Zhao to join OKX in 2014.

In 2017, CZ brought her into the newly founded Binance as Chief Marketing Officer—a pivotal hire during the exchange's formative period. As a co-founder, Yi He is credited with helping establish Binance’s corporate culture and driving user experience initiatives that supported its rapid expansion into spot trading, futures, and decentralized finance (DeFi) products. The company now claims over 300 million users globally.

Her appointment also brings a personal dimension into the corporate structure. Yi He has publicly addressed her personal relationship with CZ, stating her independence despite having children together. Her elevation ensures that a founder with intimate knowledge of Binance’s origins and ethos retains significant executive authority during a period where external leadership might have been expected.

Strategic Implications for Binance and the Crypto Market

The promotion of Yi He to co-CEO is more than a simple executive change; it is a calculated response to multifaceted crises. For Binance internally, it consolidates power within its founding circle while attempting to professionalize its regulatory-facing operations through Richard Teng. This structure aims to prevent leadership vacuum and maintain strategic continuity while satisfying external demands for greater compliance focus.

For the broader cryptocurrency industry, Binance’s ongoing struggles represent a case study in regulatory maturation. The $4.3 billion settlement in 2023 was already a watershed moment, demonstrating U.S. authorities' willingness to pursue severe penalties against non-compliant crypto entities. The new $1 billion civil lawsuit pushes into uncharted territory regarding exchange liability for third-party misuse of platforms.

Furthermore, the political entanglement surrounding CZ’s pardon introduces a new variable: the potential for crypto industry issues to become politicized in electoral contexts. This could influence how other exchanges engage with policymakers and manage their legal strategies.

Conclusion: A Defining Chapter for Global Crypto Governance

Binance’s decision to install Yi He as co-CEO alongside Richard Teng is a defining maneuver in its efforts to stabilize amid relentless legal and political pressure. The dual-leadership model explicitly acknowledges the two-front war the exchange must fight: one for regulatory legitimacy and another for product innovation and user loyalty.

The coming months will be critical. The progression of the $1 billion terrorism financing lawsuit in North Dakota will be closely watched by the entire financial sector, as its outcome could redefine compliance obligations for all centralized exchanges globally. Simultaneously, Richard Teng’s ability to navigate post-pardon regulatory relationships will test whether Binance can truly institutionalize its operations.

For crypto readers and market participants, key developments to monitor include:

• Rulings and motions in the North Dakota federal lawsuit.
• Regulatory statements from key jurisdictions (U.S., EU, UK) regarding Binance’s compliance progress.
• Operational metrics such as user growth and volume retention under the new co-CEO structure.
• Broader industry reactions as competitors may seek to capitalize on or distance themselves from Binance's legal challenges.

Ultimately, this chapter at Binance is less about individual leadership and more about the evolving contract between decentralized technology platforms and global legal systems. The exchange’s path forward will offer profound insights into whether the world's largest crypto entity can successfully transition from its agile, frontier origins into a compliant, enduring financial institution while under arguably the greatest legal siege in cryptocurrency's history