After considering Sullivan & Cromwell, the US Justice Department has chosen Forensic Risk Alliance (FRA) to oversee Binance Holdings for a period of three years and provide reports to the US government.
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Forensic Risk Alliance, a consulting firm, has been appointed by the United States Department of Justice (DOJ) to oversee Binance Holdings.
The firm of Sullivan & Cromwell was removed from consideration following difficulties encountered while working with FTX.
Forensic Risk Alliance (FRA) will continue to oversee Binance, a cryptocurrency exchange, for the next three years.Bloomberg reports that the U.S. Department of Justice (DOJ) has chosen consulting firm Forensic Risk Alliance (FRA) over leading legal firm Sullivan & Cromwell to oversee Binance Holdings Ltd, the biggest cryptocurrency exchange in the world. This action was taken as part of a plea deal for Binance to violate US money-laundering regulations and trade sanctions, as well as investigations into Binance by the DOJ.
Awarded Binance Surveillance Contract by the Justice Department to FRA
Forensic Risk Alliance, a consulting firm, has been appointed by the United States Department of Justice (DOJ) to oversee Binance Holdings. Anonymous sources have confirmed that FRA was chosen over Sullivan & Cromwell, a prominent Wall Street law firm, and other strong candidates.
Binance’s compliance with the terms of the plea agreement with the DOJ is to be overseen by FRA. As part of its investigation into Binance, the firm will be granted access to the cryptocurrency exchange’s internal files, infrastructure, and personnel. The appointment was made as a result of Binance’s plea deal in November. Changpeng “CZ” Zhao, CEO of Binance, pled guilty and agreed to resign in exchange for $4.3 billion in fines. The 30th of April saw CZ’s sentencing to four months behind bars.
No comment was given by the Justice Department. Sullivan & Cromwell and FRA spokespeople were slow to react, according to Bloomberg.
When it comes to investigations and compliance, FRA is an expert in corruption and fraud. In the aftermath of a $660 million deal struck with the US Department of Justice regarding international bribery allegations, it consulted with commodities trader Gunvor SA of Geneva.
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Bitcoin Exchange Forensic Risk Alliance (FRA) will keep an eye on cryptocurrency exchange Binance for the next three years as it undergoes intense government scrutiny. The company will receive a substantial sum of money. The government ultimately veered away from Sullivan & Cromwell, a front-runner for the job, due to controversy surrounding the firm’s work for FTX.
Sullivan & Cromwell was accused by numerous victims of FTX’s collapse of failing to uncover the fraud that co-founder Sam Bankman-Fried was committing. Furthermore, the newly installed management of FTX has continuously defended the company from the “false narrative” and lauded its recovery efforts.
Regardless, a separate five-year monitorship on Binance is expected to be appointed by the Financial Crimes Enforcement Network (FCEN) of the Treasury Department to Sullivan & Cromwell.
At this very moment, Binance may decide on the joint motion to dismiss at any moment. According to CoinGape’s exclusive reporting, Binance argued that a US DOJ filing in the Mango Markets lawsuit goes against the SEC’s stance that BUSD and other stablecoins are not registered securities.