According
to
the
latest
report,
the
United
States
Department
of
Justice
(DOJ)
has
granted
the
three-year
monitorship
of
Binance
to
consulting
firm
Forensic
Risk
Alliance
(FRA).
This
appointment
is
part
of
the
exchange’s
plea
deal
with
the
Justice
Department
last
year.
In
November
2023,
Binance
entered
into
a
plea
deal
with
the
DOJ
related
to
money
laundering
violations,
agreeing
to
pay
$4.3
billion
in
fines
and
appoint
an
independent
compliance
monitor.
The
company’s
co-founder
Changpeng
“CZ”
Zhao
also
agreed
to
step
down
as
CEO
as
part
of
the
deal
and
was
recently
sentenced
to
four
months
in
jail.
Here’s
Why
DOJ
Chose
FRA
Over
Sullivan
&
Cromwell
Citing
anonymous
sources,
Bloomberg
recently
reported
that
Forensic
Risk
Alliance
was
given
the
nod
ahead
of
Wall
Street
law
firm
Sullivan
&
Cromwell
to
act
as
an
independent
monitor
for
Binance
Holdings
Ltd.
A
monitor
is
tasked
with
evaluating
a
company’s
practices
to
eliminate
misconduct
and
establish
an
effective
ethics
and
compliance
program.
Hence,
if
there
is
any
truth
in
the
latest
revelations,
London-based
FRA
will
likely
be
able
to
access
Binance’s
internal
records
and
documents,
while
ensuring
that
the
exchange
complies
with
the
plea
agreement
over
three
years.
According
to
the
report,
New
York-based
Sullivan
&
Cromwell
(S&C)
was
one
of
the
front-runners
for
the
monitor
role.
However,
it
appears
that
the
controversy
swirling
around
the
law
firm
over
its
work
for
the
now-defunct
FTX
exchange
might
have
influenced
the
DOJ’s
decision
to
go
for
FRA
instead.
As
Bitcoinist
reported
in
February,
FTX
creditors
launched
a
class
action
lawsuit
against
Sullivan
&
Cromwell,
accusing
the
law
firm
of
being
complicit
in
the
exchange’s
collapse.
FTX’s
new
management
has
always
defended
S&C
while
touting
its
recovery
efforts
for
the
company.
On
Wednesday,
May
8,
FTX
announced
that
its
customers
would
be
fully
reimbursed
for
their
losses
due
to
the
collapse.
Binance
To
Pay
$4
Million
In
Canada
Due
To
Compliance
Issues
Besides
the
United
States,
Binance
has
been
facing
significant
pressure
from
regulatory
bodies
in
other
countries.
Most
recently,
the
world’s
largest
cryptocurrency
exchange
was
fined
$4.4
million
(C$6
million)
by
Canada’s
financial
regulator,
FINTRAC.
FINTRAC
charged
Binance
for
failure
to
comply
with
money-laundering
protections.
As
reported
by
Bitcoinist,
the
company
failed
to
register
with
the
Canadian
financial
regulator
and
report
large
virtual
currency
transactions.
While
Binance’s
regulatory
woes
continue
to
mount,
the
exchange
has
maintained
that
it
is
committed
to
increasing
compliance.
The
recent
establishment
of
the
company’s
first-ever
board
of
directors
appears
like
a
move
in
this
direction.
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Author: Opeyemi Sule
