Richard

30As negotiations between <a href="https://cryptoslate.com/companies/binance/">Binance</a> and U.S. authorities over legal violations came to a head in September, select high-value traders got an inside look at what was to come, according to new reporting from <a href="https://www.bloomberg.com/news/articles/2023-12-01/binance-vip-traders-got-sneak-peek-of-record-us-crypto-penalty">Bloomberg</a>. 
According to unnamed attendees of a Binance-hosted dinner in Singapore, company representatives suggested to VIP traders that Binance would likely pay around $4 billion to settle and survive its legal troubles with the Department of Justice. These personnel allegedly suggested the firm could afford to pay the penalty. 
Binance has disputed these characterizations of the event but declined to clarify further. 
<h2 id="reckoning">Reckoning</h2> 
In November, just two months later, Binance CEO <a href="https://cryptoslate.com/people/changpeng-zhao/">Changpeng Zhao</a> entered a guilty plea in a U.S. federal court for charges related to money laundering. Zhao stepped down as CEO as part of his plea agreement, while the company&nbsp;was fined $4.3 billion. 
According to the U.S. Department of Justice (DOJ), Binance committed <a href="https://www.justice.gov/opa/pr/binance-and-ceo-plead-guilty-federal-charges-4b-resolution">numerous financial crimes</a> over the years, including failing to register as a money transmitter despite significant U.S. operations. It further alleged that Binance violated sanctions requirements, anti-money laundering rules, and know-your-customer protocols. Though Binance claimed to block U.S. users in 2019, the DOJ said it secretly kept providing services to critical high-net-worth traders. 
The $4.3 billion settlement with the DOJ closes just one chapter of Binance’s ongoing legal saga. The Securities and Exchange Commission has filed <a href="https://www.sec.gov/news/press-release/2023-101">separate charges</a> against Binance, its U.S. affiliate BAM Trading, and founder Changpeng Zhao. The SEC alleges that Binance and its U.S. affiliate, BAM Trading, operated unregistered exchanges, broker-dealers, and clearing agencies while selling unregistered securities, including the <a href="https://cryptoslate.com/coins/bnb/">BNB token</a> and stablecoin <a href="https://cryptoslate.com/coins/binance-usd/">BUSD</a>, among other violations. 
Zhao was succeeded as CEO by Richard Teng, who has held a number of leadership roles in the Binance organization since 2021. In a letter to VIP clients, incoming Teng expressed plans to deepen relationships as Binance enters its “best days” ahead. However, with some lawsuits still pending, storm clouds remain on the horizon. 
The post <a href="https://cryptoslate.com/binance-representatives-tipped-off-vip-traders-about-impending-doj-settlement-in-advance-bloomberg/">Binance representatives tipped off VIP traders about impending DOJ settlement in advance: Bloomberg</a> appeared first on <a href="https://cryptoslate.com">CryptoSlate</a>.

Binance representatives tipped off VIP traders about impending DOJ settlement in advance: Bloomberg

Table of Contents

CryptoSlate

Other articles published on Dec 1, 2023

Surge in Bitcoin Options Trading Signals Bullish Market Sentiment for 2024

When Spot Ethereum ETFs are Approved, How High Could ETH Price Rise?

Nearly 70% of November’s $350 million crypto hacks linked to Justin Sun entities

Over $356M Lost to Hacks, Phishing Scams and Rug Pulls in Crypto in November: Beosin

Insightful Analysis: End-of-Year Crypto Price Predictions for Leading Coins

Strategic Shift: Binance Removes Bitcoin and Ethereum from DeFi Staking Amid Legal Challenges

Join our free newsletter for daily crypto updates!