Cryptocurrency News

Binance VIP traders got sneak peak of US settlement: Report

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Executives of cryptocurrency exchange Binance reportedly gave a heads-up to its top market makers regarding a potential $4.3 billion settlement with authorities in the United States.

According to a Dec. 1 Bloomberg report, Binance traders at an exclusive September dinner in Singapore were informed about a tentative deal the crypto exchange had with U.S. officials — roughly two months before the details were made public. Some Binance executives reportedly told certain traders at the event that the exchange could easily afford the $4.3 billion penalty to stay in business.

Then Binance CEO Changpeng “CZ” Zhao was reportedly not in attendance at the event, but Richard Teng — who succeeded Zhao following the settlement — was mingling with guests. A Binance spokesperson reportedly said the depiction of the VIP event was inaccurate but declined to identify which aspects were wrong, according to Bloomberg.

According to Teng’s posts on X — formerly Twitter — from September, the then head of regional markets was in Singapore for the Token 2049 conference, the Milken Institute Asia Summit, the Singapore Grand Prix for Formula One, and “plenty of side events.” Cointelegraph will release an exclusive interview with the Binance CEO at 6:00 pm UTC on Dec. 3.

Related: Binance operating without license in Philippines, regulator says

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

Though the settlement largely settles many of Binance’s legal troubles in the United States, the exchange, Binance.US and Zhao still face a lawsuit filed by the U.S. Securities and Exchange Commission in June. A group of investors has also filed suit against soccer star Cristiano Ronaldo for his role in promoting Binance nonfungible tokens (NFTs), allegedly unregistered securities.

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