Binance Faces Three-Year Monitoring by Consulting Firm

The US Department of Justice (DOJ) has appointed Forensic Risk Alliance (FRA), a London-based consulting firm, to monitor Binance, the world’s largest cryptocurrency exchange, for three years.

Reason for Monitoring

Binance recently pleaded guilty to violating anti-money laundering (AML) and sanctions laws. As part of the plea deal, the company agreed to appoint an independent firm to oversee its compliance.

FRA’s Role

FRA will have access to Binance’s internal records, facilities, and employees. The firm will report on Binance’s activities to the government.

Previous Contender

Sullivan & Cromwell, a New York-based law firm, was initially considered for the role. However, controversies over its ties to FTX and alleged failure to detect fraud led the DOJ to explore other options.

Sullivan & Cromwell’s Separate Role

Sullivan & Cromwell is still expected to be appointed as a separate five-year monitor for Binance on behalf of the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN).

FRA’s Experience

FRA specializes in forensic accounting, data governance, and compliance consulting. The firm previously worked with Gunvor SA, a Swiss trading company, to negotiate a $661 million settlement with the DOJ over a bribery case.