The Department of Justice has appointed Forensic Risk Alliance as the external supervisor of Binance, following its admission of guilt for violating US regulations on money laundering and trade sanctions.
Forensic Risk Alliance, New Arbitrator of Binance
According to anonymous sources, Forensic Risk Alliance (FRA) has been chosen to supervise Binance, surpassing Wall Street law firm Sullivan & Cromwell, following the “Binance settlement” last November.
Binance: Costly Agreement and Leadership Change
“Binance, the world’s largest cryptocurrency exchange, agrees to pay $4.3 billion in penalties” under the same agreement. Changpeng Zhao, the founder of Binance, also pleaded guilty and agreed to resign as CEO. Following his resignation, he was sentenced to four months in prison on April 30.
FRA, New Guardian of Binance Integrity
FRA’s role will be to ensure Binance’s compliance with this agreement. The company will have access to Binance’s internal records, facilities, and employees to report all activities to the government. FRA is recognized for its expertise in investigating corruption, fraud, and corporate compliance.
Sullivan & Cromwell: Controversy-Plagued Candidacy
Initially favored for the supervisory role, Sullivan & Cromwell faced setbacks due to its controversial involvement with FTX, a Binance rival. Critics, including those who lost money due to FTX’s bankruptcy, argued that Sullivan & Cromwell failed to detect co-founder Sam Bankman-Fried’s fraud. Nonetheless, Sullivan & Cromwell is set to receive separate five-year monitoring for Binance from the Treasury Department’s financial crime enforcement network.