Binance Privately Told VIPs About Massive $4B Settlement A Few Months Earlier

Binance discussed its $4 billion settlement with the Department of Justice at a dinner for major market makers hosted by Binance. This dinner in a Singapore nightclub happened months before the settlement amount was announced to the public.

Bloomberg reported that based on conversations at the dinner, The guests believed Binance could pay the $4 billion. Former CEO Changpeng Zhao was not present, but the new CEO, Richard Teng, was in attendance.

In November, Zhao reached a plea agreement to step down as CEO and admitted to anti-money laundering violations. A US judge has also decided to keep Zhao in the US until the case is resolved because they fear that he may not return for sentencing.

Zhao, who is a resident of the UAE, will be facing sentencing next year February. He was under investigation by the Department of Justice and this led to the charges and settlement announcement.

While Zhao was barred from managing Binance for three years, Binance also pleaded guilty to operating without a proper license and violating sanctions laws. 

The company is still being investigated by the Securities and Exchange Commission over allegations of misusing customer funds and selling unregistered securities. Binance has denied Bloomberg's claim calling it inaccurate