Binance 3-Year Monitorship To Be Handled By FRA
The US Department of Justice has granted consulting firm Forensic Risk Alliance (FRA) a three-year monitorship of Binance as part of its plea deal with the DOJ in November 2023.
Binance entered into a plea deal with the DOJ related to money laundering violations, agreeing to pay $4.3 billion in fines and appoint an independent compliance monitor. The company’s co-founder, Changpeng “CZ” Zhao, agreed to step down as CEO and was recently sentenced to four months in jail.
FRA will likely access Binance’s internal records and documents to ensure compliance with the plea agreement over three years. FTX creditors launched a class action lawsuit against Sullivan & Cromwell in February, accusing the law firm of being complicit in the exchange’s collapse. Binance has been facing pressure from regulatory bodies in other countries, including Canada’s financial regulator, FINTRAC, for failing to comply with money-laundering protections.
(With inputs from Shikha Singh)
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