Cryptocurrencies

DOJ Snubs Sullivan & Cromwell, Taps FRA for Binance’s Monitorship

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The US Department of Justice (DOJ) has selected Forensic Risk Alliance (FRA) for the three-year monitorship of Binance, a decision that was chosen over initial favorite Sullivan & Cromwell (S&C), as reported by BNB Bloomberg today. This appointment is part of Binance’s plea deal from November for breaching money-laundering regulations and trade sanctions. In addition to a $4.3 billion penalty, Binance’s CEO Changpeng Zhao stepped down and received a four-month prison sentence. FRA will be responsible for overseeing Binance’s internal operations to ensure compliance and will report its findings to the government.

The choice of FRA over S&C, a prestigious Wall Street law firm, represents a significant shift from expectations. S&C was initially considered for the role but was ultimately turned down, possibly due to their past involvement with FTX, Binance’s now-bankrupt rival crypto exchange. FTX investors have criticized S&C for aiding the company in fraudulent activities.

FTX has recently unveiled a plan to repay its creditors, but this plan has faced opposition from Sunil Kavuri, representing the largest group of FTX creditors. The DOJ’s decision to appoint FRA has been well-received by those affected by the FTX collapse.

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