In a clandestine dinner held in Singapore, top executives of Binance allegedly provided insider information to select VIP traders about an imminent settlement with U.S. authorities. The disclosure hinted at a potential $4.3 billion settlement, allowing Binance to navigate regulatory challenges and continue its operations in the United States.
According to a recent Bloomberg report on December 1, Binance traders gathered at an exclusive dinner in September, where certain executives shared details of a tentative deal with U.S. officials. The revelation reportedly occurred two months before the formal announcement of the settlement. The executives conveyed that the exchange had the financial capacity to easily cover the $4.3 billion penalty and continue its business operations.
Although Binance’s CEO Changpeng “CZ” Zhao was not reportedly present at the event, Richard Teng, who succeeded Zhao after the settlement, engaged with the guests. In response to the report, a Binance spokesperson stated that the depiction of the VIP event was inaccurate but did not specify which details were incorrect.
During the same timeframe in September, Teng shared updates on X (formerly Twitter) about his presence in Singapore for various events, including the Token 2049 conference, the Milken Institute Asia Summit, and the Singapore Grand Prix for Formula One. Teng’s posts also mentioned his participation in numerous side events.
As part of the settlement agreement, Binance is obligated to pay $4.3 billion to different U.S. authorities and regulators. Notably, CZ is personally responsible for a $150 million payment to the U.S. Commodity Futures Trading Commission. At the time of publication, Zhao is out on bail in the United States, awaiting a court decision on his request to return to the United Arab Emirates before the scheduled sentencing in February.
While the settlement addresses several of Binance’s legal challenges in the United States, the exchange, Binance.US, and CZ still face an ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in June. Additionally, a group of investors has initiated legal action against soccer star Cristiano Ronaldo, accusing him of promoting Binance nonfungible tokens (NFTs) as allegedly unregistered securities.