U.S. DOJ Secures Three-Year Monitor for Binance Amid Regulatory Oversight

DOJ Appoints Monitor for Binance

The U.S. Department of Justice (DOJ) has enlisted a London-based consulting firm, Forensic Risk Alliance (FRA), to oversee Binance as a result of the crypto exchange's settlement terms. This assignment, part of a broader three-year monitoring agreement, follows an earlier pact necessitating Binance’s adherence to rigorous compliance mandates and the payment of hefty fines.

Binance's Compliance Journey

Embarked on a path of regulatory compliance, Binance has been compelled to accept an independent compliance monitor and bid farewell to its CEO, Changpeng 'CZ' Zhao, who has been sentenced to a prison term. This move underscores the exchange's commitment to rectifying its operational procedures in the aftermath of a plea deal, which included a staggering $4.3 billion in fines.

The Battle for Monitorship

Prevailing over the initial frontrunner Sullivan & Cromwell, FRA has been favored due to the latter's contentious role in the FTX bankruptcy case. Allegations of deep involvement in FTX's operational missteps have tarnished Sullivan & Cromwell’s reputation, yet they might still receive a separate appointment by the FinCEN.