Binance Under Watch: DOJ Enforces Compliance with New Monitor

DOJ Appoints Monitor for Binance

Following a plea agreement with the U.S. Department of Justice over money laundering allegations, Binance will undergo three years of oversight by Forensic Risk Alliance. Changpeng Zhao, the co-founder of Binance, has agreed to resign as CEO and face a jail sentence, marking a significant turn for the cryptocurrency exchange.

The Selection of FRA

Forensic Risk Alliance, a London-based firm, was preferred over Sullivan & Cromwell for the Binance monitorship due to controversies surrounding the latter's involvement with the fallen FTX exchange. FRA is now responsible for ensuring Binance abides by the plea deal which includes adherence to robust compliance protocol.

Global Compliance Efforts

Aside from the U.S., Binance has also faced a financial reprimand in Canada, being fined for not meeting the anti-money laundering requirements. While grappling with these regulatory challenges, the company is actively enhancing its compliance measures, as demonstrated by the establishment of its first board of directors.