In a startling revelation, it has been reported that executives from Binance provided advanced information about the impending $4.3 billion settlement with U.S. authorities to select VIP traders. According to a December 1 Bloomberg report, attendees at an exclusive dinner for Binance traders in Singapore were informed about the potential settlement approximately two months before it was officially disclosed. The executives allegedly assured these traders that Binance could easily afford the hefty $4.3 billion penalty to continue its operations.
Notably, Binance CEO Changpeng “CZ” Zhao was not present at the event, but Richard Teng, who assumed leadership after the settlement, was reportedly mingling with guests. While a Binance spokesperson disputed the accuracy of the depicted VIP event, specific details about the inaccuracies were not disclosed.
As part of the settlement, Binance is obligated to pay $4.3 billion to various U.S. authorities and regulators. CZ personally bears responsibility for a $150 million payment to the U.S. Commodity Futures Trading Commission. Despite the settlement addressing numerous legal challenges in the U.S., Binance.US and CZ still face a lawsuit filed by the U.S. Securities and Exchange Commission, and a group of investors has filed a suit against soccer star Cristiano Ronaldo for his involvement in promoting Binance nonfungible tokens (NFTs), which are alleged to be unregistered securities. The settlement has been a major development in the crypto industry, with far-reaching implications for the future trajectory of Binance and the regulatory landscape.
