Key takeaways:
- VIP traders on Binance received advance knowledge of the crypto exchange’s staggering $4.3 billion fine
- Binance executives reassured VIPs that the exchange would overcome legal challenges,
In a revelation that sheds light on Binance’s clandestine dealings, reports suggest that the crypto exchange’s major traders were let in on the upcoming settlement with U.S.
authorities during an exclusive dinner in Singapore this September. Attendees included key figures, with Richard Teng, the anticipated successor to Binance founder Changpeng Zhao, among the notable guests, as disclosed by anonymous participants.
The undisclosed meeting reportedly took place during a high-profile conference in Singapore, where Binance representatives faced probing questions about the impending settlement and the legal challenges the company was confronting.
Notably, concerns were raised about the potential settlement amount, with the possibility of a substantial $4 billion fine discussed. Some privileged attendees, after engaging with Binance representatives, left convinced that the exchange would indeed bear this financial burden—a sum believed to be within Binance’s means.
Notably absent from the gathering was Binance founder and then-CEO Changpeng “CZ” Zhao, raising eyebrows and leading to speculation about his future with the company.
The absence, unbeknownst to many, foreshadowed Zhao’s imminent departure from Binance. This speculation gained credence when Zhao later pled guilty to criminal charges in a Seattle courtroom, resulting in his resignation.
Although a Binance spokesperson contested the accuracy of the depiction of the VIP event, key details remain undisclosed. Richard Teng, identified as Zhao’s successor after the settlement, was reportedly present at the event, mingling with guests.
Despite Binance’s denial of inaccuracies, the discrepancy raises questions about the transparency of the exchange’s communication.
The unfolding narrative suggests that a potential deal between Zhao and the U.S. The Department of Justice earlier in 2023 faced setbacks, with officials demanding a more severe punishment for the former CEO.
As the months passed, negotiations with the department intensified, leading to heightened penalties being insisted upon.
Changpeng Zhao now faces a maximum penalty of 10 years in prison and a hefty fine, with his sentencing scheduled for February.
His plea agreement includes a waiver of the right to appeal, provided his sentence does not exceed 18 months, marking a critical chapter in the legal saga surrounding one of the crypto industry’s most influential figures.
