The Justice Department (DOJ) has chosen consulting firm Forensic Risk Alliance (FRA) to oversee Binance Holdings Ltd., which pleaded guilty to violating US money-laundering laws and trade sanctions.
FRA specializes in fraud investigations and compliance and will be granted access to Binance’s internal records, facilities, and employees. Their role is to ensure Binance adheres to the terms of the plea deal.
This selection comes after the DOJ rejected Sullivan & Cromwell, a prominent Wall Street law firm initially favored for the monitorship role. Sources claim Sullivan & Cromwell’s prior work for
FTX, a rival cryptocurrency exchange that collapsed in November 2022, may have influenced the decision. FTX’s new management has defended Sullivan & Cromwell against accusations of failing to detect fraud by FTX co-founder Sam Bankman-Fried.
While FRA takes over the DOJ monitorship, Sullivan & Cromwell remains a potential candidate for a separate five-year monitorship on behalf of the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). This monitorship would focus on identifying and reporting suspicious activity transactions allegedly ignored by Binance in the past.
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