Executives of Binance Informed Top Market Makers About Potential $4.3 Billion Settlement
According to a recent report, executives of cryptocurrency exchange Binance gave advanced notice to its top market makers about a potential $4.3 billion settlement with U.S. authorities. These traders were reportedly informed about the tentative deal during an exclusive dinner in Singapore back in September, two months before the details were made public. Some Binance executives allegedly assured these traders that the exchange could easily afford the hefty penalty to remain operational. Although Binance CEO Changpeng “CZ” Zhao was not present at the event, Richard Teng, who succeeded Zhao after the settlement, was reportedly mingling with guests.
The Settlement and Ongoing Legal Troubles
As part of the settlement, Binance must pay $4.3 billion to various U.S. authorities and regulators. CZ himself is responsible for paying $150 million to the U.S. Commodity Futures Trading Commission. However, despite this settlement resolving many of Binance’s legal issues in the U.S., there is still an ongoing lawsuit filed by the U.S. Securities and Exchange Commission against Binance.US and CZ. Additionally, Cristiano Ronaldo is facing a lawsuit from investors for promoting Binance nonfungible tokens (NFTs) that are allegedly unregistered securities.
Hot Take: Binance’s Controversial VIP Event Raises Questions
The revelation about Binance executives informing top traders about the potential settlement during an exclusive dinner raises questions about transparency and fairness within the cryptocurrency industry. Such privileged access to information could give certain traders an unfair advantage over others, undermining trust in the market. It remains to be seen how this revelation will impact Binance’s reputation and whether regulatory authorities will take any action regarding this matter.
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