The Department of Justice is reconsidering its choice of Sullivan & Cromwell as the independent monitor for Binance due to its ties with FTX. Bloomberg reported that Sullivan & Cromwell was close to being appointed to oversee Binance’s compliance with a $4.3 billion penalty settlement for violating U.S. anti-money laundering laws and sanctions regulations. The decision has been put on hold over concerns about Sullivan & Cromwell’s past involvement with FTX, specifically regarding its oversight capabilities.

The DOJ is now exploring other candidates for the monitorship, while FinCEN still leans towards selecting Sullivan & Cromwell. Meanwhile, a series of lawsuits against FTX have emerged post-Sam Bankman-Fried’s departure, including a class action against Sullivan & Cromwell and challenges related to the valuation of crypto assets.

During its time with FTX, Sullivan & Cromwell earned over $170 million in fees for bankruptcy proceedings, where it was tasked with locating billions of dollars in assets. Despite promises of full creditor recovery, the firm faces legal challenges and scrutiny from a bankruptcy investigator. Sam Bankman-Fried, FTX’s co-founder, implicated Sullivan & Cromwell in his defense, but the firm maintains its limited involvement stance, supported by FTX’s new management.

If chosen, the monitor for Binance will conduct a thorough review of the company’s compliance with regulatory requirements, including examining internal documents and engaging with staff to ensure adherence to legal obligations. In related news, the Nigerian government is seeking the extradition of a Binance executive from Kenya.

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