Forensic Risk Alliance (FRA), an international consulting company, has been entrusted by the US Department of Justice (DOJ) to oversee Binance’s compliance with regulatory requirements for the next three years. This appointment is one of the conditions of the November 2023 plea bargain in which Binance admitted to federal accusations of money laundering and paid a $4.3 billion fine.
Instead of Sullivan & Cromwell, the DOJ chose FRA to monitor Binance’s compliance. This decision was based on FRA’s experience in representing the defunct cryptocurrency exchange FTX. Sullivan & Cromwell faced accusations of complicity in FTX Group’s fraud, which led to creditors raising concerns about their involvement.
However, Sullivan & Cromwell is expected to be selected for a separate five-year monitoring position representing the Financial Crimes Enforcement Network of the Treasury Department.
Changpeng Zhao, the former CEO of Binance, was recently sentenced to four months in jail for the failure to maintain the cryptocurrency exchange’s anti-money-laundering policy.
In other news, Bitcoin has experienced a significant drop of over $2,000. The question now is whether BTC will continue to decline.
