International consulting firm Forensic Risk Alliance will closely monitor cryptocurrency exchange Binance’s compliance activities for the next three years.
The United States Department of Justice (DOJ) has reportedly tasked international consultancy Forensic Risk Alliance (FRA) with overseeing Binance’s adherence to regulatory requirements over the next three years, sources familiar with the situation reveal.
As part of a plea deal in November 2023, where Binance admitted to money laundering and other federal charges and agreed to pay a $4.3 billion fine, it was mandated that a third-party law firm oversee its compliance for the next three years.
According to a Bloomberg report on May 10, FRA will have access to internal records, premises, and staff to provide regular updates to the government on the exchange’s activities.
Initially, law firm Sullivan and Cromwell were considered for the contract. However, their past association with now-bankrupt rival crypto exchange FTX led the DOJ to select FRA instead.
A February 17 report by Cointelegraph highlighted FTX creditors’ allegations against Sullivan & Cromwell, accusing them of actively participating in FTX Group’s multibillion-dollar fraud.
Despite this, there’s an expectation that Sullivan & Cromwell may still secure a separate five-year monitoring role for Binance, representing the Treasury Department’s Financial Crimes Enforcement Network.
[Note: This news has been sourced from cointelegraph. com and generated with the assistance of artificial intelligence.]
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