Recently, the Justice Department appointed Forensic Risk Alliance (FRA) as the external monitor for Binance, following the cryptocurrency exchange’s guilty plea to charges of breaching U.S. anti-money laundering laws and violating trade sanctions. This decision comes as part of Binance’s November plea agreement, which includes a substantial penalty of $4.3 billion. Additionally, Binance’s founder, Changpeng Zhao, has agreed to resign from his role as CEO and will serve a four-month prison sentence starting April 30.

FRA’s role will be crucial in ensuring that Binance adheres to the compliance terms set out in the plea agreement. The firm will have the authority to examine Binance’s internal records, facilities, and interact with its employees to prepare reports on the company’s compliance status for the government. FRA is well-regarded for its proficiency in handling cases related to corruption, fraud investigations, and regulatory compliance. The firm has previously worked with Geneva-based commodities trader Gunvor SA, aiding in the resolution of a $660 million case with the Justice Department concerning foreign bribery charges.

The selection of FRA came after considering other prominent candidates, including the Wall Street law firm Sullivan & Cromwell, which faced challenges due to its controversial involvement with FTX prior to its bankruptcy in November 2022. Critics have pointed out Sullivan & Cromwell’s inability to detect fraudulent activities by FTX co-founder Sam Bankman-Fried, although FTX’s new management has since defended the firm’s efforts in aiding the company’s recovery. Despite not securing the monitor role, Sullivan & Cromwell is expected to undertake a separate five-year monitorship for Binance on behalf of the Treasury Department’s Financial Crimes Enforcement Network, focusing on identifying and reporting suspicious transactions.

In a positive development for the cryptocurrency sector, FTX has announced plans to fully reimburse its customers for losses incurred during its bankruptcy, complete with interest. This move is part of the ongoing efforts to stabilize the market and restore investor confidence following significant disruptions.

For those interested in detailed analyses and updates on developments like these in the cryptocurrency market, stay tuned to Global Crypto News.

Post Views: 7