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According to Bloomberg, VIP Investors of Binance Were Informed About the Sanctions Almost 3 Months in Advance

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In September, as the details of the multibillion-dollar agreement between Binance and U.S. authorities were taking shape, some of its major traders, gathered in Singapore for a conference, received a very important scoop. During an elegant private dinner organized by Binance at the exclusive 1880 club, they were informed that the cryptocurrency giant would overcome its legal issues in the United States.

The event unfolded in a distinguished atmosphere, with Binance executives circulating while VIPs, a selection of market makers, settled at long tables with their names. Notably, Changpeng Zhao did not participate in the event, as two months later, he would plead guilty to criminal charges in a Seattle court and resign. In his place, Richard Teng, his future replacement, mingled among the guests.

During the dinner, the attendees directly addressed Binance representatives about the details of the legal agreement, including the possible $4 billion fine. Some left convinced that the company would be willing to bear that sum, which, as they speculated, it could easily afford.

Meanwhile, CZ, despite residing in the United Arab Emirates, voluntarily surrendered to U.S. authorities. Although the UAE does not have an extradition treaty with the U.S., the increasing pressure and legal negotiations influenced Zhao’s decision.

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Binance Legal History and Repercussions

Binance’s legal history in the U.S. dates back to 2018, facing investigations by the Department of Justice and the Treasury Department. However, the SEC did not participate in the multibillion-dollar agreement and continues its case against Binance and Zhao for alleged irregularities.

It is worth noting that the exchange was also under investigation by the IRS and FinCEN, as the company drew attention with its marketing in 2018, promising clients to avoid identity verification for certain account types. The sanctions, including a $4.3 billion fine, were deemed by authorities as some of the most significant imposed on a blockchain platform.

Regarding individual repercussions, Zhao will face a maximum sentence of 10 years and substantial fines. His sentencing is scheduled for February, and although he could return to the company in three years, Binance is already looking to turn the page under the interim leadership of Richard Teng, who made some announcements for VIP clients.

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