April 19, 2024
Binance VIP Traders Previewed US Settlement
Latest Cryptocurrency News

Binance VIP Traders Previewed US Settlement

Executives of cryptocurrency exchange Binance reportedly provided advance notice to its top market makers about a potential $4.3-billion settlement with U.S. authorities.

A December 1 Bloomberg report revealed that Binance traders were informed about the tentative deal at an exclusive dinner in Singapore in September, approximately two months before the details were publicly disclosed. Some Binance executives allegedly assured certain traders at the event that the exchange could easily afford the $4.3-billion penalty to continue its operations.

While Binance CEO Changpeng “CZ” Zhao was reportedly absent from the event, Richard Teng, who succeeded Zhao following the settlement, interacted with guests, a Binance spokesperson contested the portrayal of the VIP event but did not specify inaccuracies, according to Bloomberg.

According to Teng’s September posts on X (formerly Twitter), he, as the head of regional markets at the time, was in Singapore for various events, including the Token2049 conference, the Milken Institute Asia Summit, the Singapore Grand Prix for Formula 1, and “plenty of side events.”

As part of the settlement, Binance must pay $4.3 billion to various U.S. authorities and regulators, with CZ personally responsible for a $150 million payment to the U.S. Commodity Futures Trading Commission. At the time of publication, Zhao was still out on bail in the U.S., awaiting a court decision on his request to return to the United Arab Emirates before his February sentencing.

While the settlement largely resolves many of Binance’s legal challenges in the U.S., both Binance.US and Zhao still face a lawsuit filed by the U.S. Securities and Exchange Commission in June. Additionally, a group of investors has filed a suit against soccer star Cristiano Ronaldo for his involvement in promoting Binance nonfungible tokens (NFTs), which are allegedly considered unregistered securities.

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