The US Department of Justice (DOJ) has reportedly appointed a London-based consultancy to serve as a third-party monitor for Binance, after the world’s largest crypto exchange pleaded guilty to violating US anti-money laundering (AML) regulations and sanctions laws.
People familiar with the matter who spoke on condition of anonymity say the DOJ has selected Forensic Risk Alliance (FRA) for Binance’s three-year monitorship over the previous frontrunner, New York-based law firm Sullivan & Cromwell, Bloomberg reports .
One of the conditions of Binance’s November plea deal is the appointment of an independent firm to monitor compliance. The newly appointed monitor will have access to Binance’s internal data, facilities and employees to report to the government on the crypto exchange’s activities.
Sullivan & Cromwell used to be the leading contender for the lucrative role, but controversies over its ties to defunct crypto exchange FTX and its alleged failure to investigate the fraud committed by the firm’s convicted co-founder Sam Bankman-Fried have reportedly prompted the judge to investigate other options.
But Sullivan & Cromwell is still expected to be appointed for a separate five-year Binance monitorship on behalf of the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
FRA, which specializes in forensic accounting, data governance and compliance advisory services, previously worked with Swiss-based trading firm Gunvor SA to negotiate a $661 million settlement with the DOJ over a bribery case involving Ecuadorian officials.
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