Binance Under Surveillance of US Justice Dept’s Monitor Forensic Risk Alliance
Highlights
- The U.S. Justice Department (DOJ) names consulting firm Forensic Risk Alliance as to monitor Binance Holdings.
- Sullivan & Cromwell was dropped from the list after setback faced due to work with FTX.
- Crypto exchange Binance to remain under the monitoring of Forensic Risk Alliance (FRA) for three years.
The U.S. Department of Justice (DOJ) selected consulting firm Forensic Risk Alliance (FRA) as monitor of the world’s largest crypto exchange Binance Holdings Ltd over top law firm Sullivan & Cromwell, as per a report by Bloomberg. The move was part of DOJ investigations into Binance and a plea deal for violating US money-laundering regulations and trade sanctions.
Justice Department Selects FRA for Binance’s Surveillance
The U.S. Justice Department (DOJ) names consulting firm Forensic Risk Alliance as to monitor Binance Holdings. FRA was selected over Wall Street law firm Sullivan & Cromwell and several other top contenders, according to sources who asked to remain confidential.
FRA is tasked to monitor Binance’s compliance with the plea agreement with the DOJ. The firm will gain access to Binance’s internal records, facilities, and employees, reporting crypto exchange’s activities to the government. The appointment came in response to Binance’s November plea deal. Binance paid $4.3 billion in penalties, CEO Changpeng “CZ” Zhao pleaded guilty and agreed to step down. CZ was sentenced to four months in prison on April 30.
The Justice Department declined to comment. Spokespeople for Sullivan & Cromwell and FRA didn’t immediately respond to requests for comment, said Bloomberg.
FRA specializes in corruption and fraud investigations and compliance. It acted as a consultant to Geneva-based commodities trader Gunvor SA after $660 million negotiation with the Justice Department over foreign bribery charges.
Also Read: Here’s Why Bitcoin Price Is Falling Sharply
Binance Under Intense Govt Scrutiny
Crypto exchange Binance to remain under the monitoring of Forensic Risk Alliance (FRA) for three years. The firm will be provided with hefty money. Sullivan & Cromwell was a front-runner for the job but controversy over the firm’s work for FTX eventually guided the government in a different direction.
Many people who lost money in FTX’s collapse claimed Sullivan & Cromwell failed to detect fraud being perpetrated by co-founder Sam Bankman-Fried. In addition, FTX’s new management consistently defended the firm against the “false narrative” and praised its recovery work.
Regardless, Sullivan & Cromwell is expected to be appointed by the Treasury Department’s Financial Crimes Enforcement Network (FCEN) for a separate five-year monitorship on Binance.
Meanwhile, Binance ruling on joint motion to dismiss can come anytime now. Binance contended that a US DOJ filing in the Mango Markets lawsuit contradicts the SEC’s position that BUSD and other stablecoins are unregistered securities, as reported exclusively by CoinGape.
Also Read: Bloomberg Reveals Reasons Behind Bitcoin, ETH, SOL, XRP, SHIB Prices Crash
- Pudgy Party Hits 750K Downloads- Expert Predicts 400% “Bull Rally” for PENGU
- Pi Network Update: Team Launches Faster KYC Solution Amid Rising Complaints On Token Claim Delays
- Glassnode Data Shows Bitcoin May Drop To $105.5K This Week, Here’s Why
- Co-Founder Predicts $1,000 SOL Price as Solana Treasuries Skyrocket to $4B
- REX-Osprey XRP ETF Debuts With Record $37.7M Volume as Analyst Projects Bullish Run
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
- HBAR Price Prediction as SEC Approves Generic ETF Framework – Analyst Targets $1.80
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
- Pepe Coin Price Prediction as Whale Moves $25M From Robinhood- Is a Breakout to $0.00002 Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
