Binance Under Surveillance of US Justice Dept’s Monitor Forensic Risk Alliance
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
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