The U.S. Department of Justice (DOJ) selected Forensic Risk Alliance (FRA) to supervise cryptocurrency platform Binance following its admission to breaching U.S. anti-money laundering laws, which had led to a substantial $4.3 billion penalty. FRA was preferred over Sullivan & Cromwell due to concerns about the latter’s ties to the now-defunct crypto exchange FTX, which faced criticism for overlooking significant fraud.
FRA’s responsibilities include comprehensive oversight of Binance’s internal operations to ensure adherence to U.S. regulatory standards. They will have unrestricted access to the company’s records, facilities, and personnel. All activities must also be reported directly to the U.S. government.
Sullivan & Cromwell could still secure a position with the Financial Crimes Enforcement Network to oversee Binance’s compliance with transaction reporting rules. Meanwhile, Binance is confronting penalties beyond U.S. borders. The firm has agreed to fines in India and received a $4.4 million penalty in Canada for failing to comply with anti-money laundering guidelines.
