Binance VIP Traders Access Insider Info on Major Settlement

Binance VIP Traders

TL;DR

  • Binance executives tipped off traders about the impending $4.3 billion settlement with U.S. authorities for the exchange to stay in business.
  • The settlement was discussed with some of Binance’s V.I.P. traders at an exclusive dinner in Singapore this September 2023.

Binance’s Market Makers Got Sneak Peek of U.S. Settlement

Binance’s market makers, attending a dinner conference in Singapore on Sept. 2023, were given a head-up on the exchange’s forthcoming settlement.

Binance's investers were given a heads up about the $4.3M settlement deal.
Binance VIP Traders | Source: Binance

According to a December 1, 2023 Bloomberg report, the executives were informed about the settlement deal Binance had with U.S. authorities.

They knew about the impending penalty roughly two months before the news was made public.

It is reported that Binance executives told some market makers at the event that the crypto exchange could easily afford the $4.3 billion fine to stay in business.

Former Binance C.E.O. Changpeng Zhao was notably absent. However, Richard Teng—who replaced C.Z. as C.E.O., was present and asked not to be identified in the discussions.

The executives told the V.I.P. traders that Binance would survive. Responding to these reports, a Binance spokesman told Bloomberg the depiction of the Singapore event was inaccurate.

He, however, could not emphasize and identify which aspects were wrong, as reported by Bloomberg.

Largest Corporate Settlement Deal in U.S History

Two months after the Singapore event, the U.S. authorities agreed with Binance on a $4.3 billion settlement.

It was one of the largest corporate settlements in U.S. history, concluding investigations into money laundering and sanctions violations on Binance.

Binance VIP Traders
Former Binance CEO Zhao leaving court in Seattle | Source: Seattle Times

More than that, the settlement included criminal charges against Zhao, who agreed to step down as Binance C.E.O. as part of the deal with the D.O.J.

Zhao also pleaded guilty to Bank Secrecy Act violations and will pay a $50 million fine. Additionally, he posted a $175 million personal recognizance bond and is facing a potential prison sentence of up to 18 months.

Zhao’s sentencing is set for February 2024, and he’ll stay in the U.S. ahead of the hearing until further review is done.

If Changpeng Zhao fails to show up in court, he will face up to 10 years in prison and a penalty of $250,000.

C.Z.’s Decision to Resign as C.E.O. Known for Months

Zhao has been absent for most Binance events and is not confined to this Singapore meeting. He was missing in action at the Binance’s conference in Istanbul last month.

He chose to stay close to his Dubai residence in the United Arab Emirates.

It is important to note that the U.A.E. doesn’t have an extradition with the U.S. However, Zhao voluntarily flew to the United States to attend the hearing.

Zhao has been preparing to resign since May 2023, as four people familiar with this conversation during Binance’s leadership calls reported.

A possible agreement with the D.O.J. failed earlier this year after some officials tried to push for Zhao to face stiffer penalties personally.

Though the settlement is largely settled, the crypto exchange has other legal troubles. Zhao still faces a lawsuit filed by the U.S. Securities and Exchange Commission.

Far from that, some investors are suing Cristiano Ronaldo for promoting Binance and allegedly unregistered securities.

Do you think Binance would survive all these allegations?