Executives of the cryptocurrency exchange Binance informed its top market makers about the possible $4.3 billion settlement with U.S. authorities, allowing the exchange to stay in business.
According to a report published by Bloomberg on December 1, Binance traders were briefed on a provisional agreement between the cryptocurrency exchange and U.S. officials at an exclusive dinner in Singapore in September — approximately two months before the disclosure of the specifics.
Reportedly, at the event, some Binance executives assured specific traders that the exchange could afford the $4.3 billion penalty without difficulty continuing operations.
Reportedly absent from the event was then-CEO of Binance Changpeng “CZ” Zhao; however, Richard Teng, who assumed Zhao’s responsibilities after the settlement, mingled with attendees. Bloomberg reports that a Binance representative stated the portrayal of the VIP event was erroneous but declined to specify which details were incorrect.
The former head of regional markets was in Singapore for the Token2049 conference, the Milken Institute Asia Summit, the Formula 1 Singapore Grand Prix, and “plenty of side events,” according to Teng’s September posts on X (formerly Twitter).
CZ is liable to the U.S. Commodity Futures Trading Commission for $150 million as part of the settlement agreement with Binance, which requires the company to pay $4.3 billion to various U.S. authorities and regulators.
A court in the United Arab Emirates deliberated Zhao’s request to return there before his February sentencing; he remained on parole in the United States at the time of publication.
The U.S. Securities and Exchange Commission filed a lawsuit against the exchange Binance.US and Zhao in June, although the settlement primarily resolves Binance’s legal issues in the United States.
For his alleged promotion of Binance nonfungible tokens (NFTs), which are unregistered securities, a group of investors has also lodged a lawsuit against the soccer star Cristiano Ronaldo.
