Binance Settles DOJ Charges, Pre-Informed VIP Traders

By: Isha Das

Binance, a leading cryptocurrency exchange, navigated through legal troubles with the U.S. authorities resulting in a huge settlement amount of around $4 billion. Reports suggest that high-value traders of the exchange were given a heads up before the news was made public.

Changpeng Zhao, the former CEO of Binance, stepped down from his position as part of his plea agreement, and the company was subsequently penalized $4.3 billion. The U.S. Department of Justice (DOJ) alleged various financial crimes by Binance, including direct violation of anti-money laundering rules and sanctions requirements, along with not abiding by the know-your-customer protocols.

Furthermore, the Securities and Exchange Commission has also filed separate charges against Binance, focusing on the sale of unregistered securities. The successors of the company, including the new CEO Richard Teng, are hopeful of continuing strong relationships with the VIP traders despite the prior controversies. Teng has maintained a variety of leadership roles within the Binance organization since 2021.