The US Department of Justice (DOJ) has appointed consultancy firm Forensic Risk Alliance to keep an eye on Binance’s operations for the next three years.
Earlier, in November 2023, Binance, and its then CEO, Changpeng Zhao, pleaded guilty to several AML violations reported by the DOJ. As such, the agency has relegated the task of scrutinizing Binance to FRA to ensure Binance's compliance. For the next three years, FRA has been authorized to access Binance’s records, premises, and even employee details, to provide the DOJ with updates on the company’s activities.
It is worth noting that initially, Sullivan & Cromwell was expected to acquire the monitoring contract. However, concerns arose due to the firm's prior involvement with FTX, a defunct exchange that sent ripples through the crypto industry when it collapsed in November 2022 .
Meanwhile, Binance is already dealing with a slew of regulatory issues. Shortly before the arrival of this news, Binance was fined by Canadian regulator FINTRAC due to the exchange’s failure to adhere to financial rules. The exchange is also currently engaged in litigation issues with the Nigerian government.
