Binance, the world’s largest cryptocurrency exchange, has replaced its chief financial officer (CFO) roughly a week after the worst hacking incident in its history. Binance announced on the 7th (local time) that Kaiser Ng is leaving the company and that Justin Yek, formerly a vice president of finance at Airwallex, will join as his successor.
The personnel change comes shortly after hackers illicitly withdrew $6.3 billion (about 8.6 trillion won) worth of cryptocurrency on the 29th of last month, drawing intense market attention. Concerns about the exchange’s financial health have also grown after reports that customer funds saw net outflows of $4.9 billion (about 6.7 trillion won) in a single day following the incident.
He Yi, co-CEO of Binance, said in a statement that day that “Kaiser Ng decided to embark on a new challenge after working at Binance for more than five years, and the succession plan has been in progress for the past six months.” The company maintains that the replacement was a scheduled step unrelated to the hacking incident.
The incoming CFO, Yek, built his finance career at investment banks and most recently served as vice president of finance at the payments platform Airwallex. “I will lead the finance organization so that the company can grow responsibly and realize its global business goals,” he said.
Ng, the outgoing CFO, oversaw Binance’s finances starting in January 2022 and previously worked at the rival exchange Kraken. Some observers have interpreted the move as holding him accountable for the massive fund outflow, but the company dismissed that view.
Meanwhile, the hack has been identified as a sophisticated attack that began months earlier through fake recruiting attempts targeting engineers and malware hidden in software downloads. Binance has said it will fully reimburse affected customers, and local reports indicate it has already covered about 90% of the losses.
The U.S. Federal Bureau of Investigation (FBI) has identified a North Korean hacking group as the culprit, but Pyongyang denies involvement. The incident is recorded as the largest single-exchange loss in the history of the cryptocurrency industry.
Key FiguresDetailsHack losses$6.3 billion (about 8.6 trillion won)Net outflows in one day after incident$4.9 billion (about 6.7 trillion won)Date of incidentOctober 29Date CFO replacement announcedNovember 7
Note: Amounts are based on the original report, and won conversions apply reference exchange rates.
The personnel change is drawing industry attention because the finance leadership vacuum at a major exchange has coincided with the hack response. With global regulators recently tightening fund management and internal controls at exchanges, analysts say the new CFO faces the task of protecting customer assets and restoring trust. Some market observers also suggest that the progress of Binance’s reimbursements and whether further organizational restructuring occurs could affect short-term investor sentiment.
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