- The US Department of Justice has determined who will oversee Binance, the world’s largest cryptocurrency exchange.
- The Forensic Risk Alliance has been chosen as the watchdog for Binance Holdings Ltd., according to Bloomberg.
- Binance reached a settlement of $4.3 billion in the US in November 2023 for violating money laundering and sanctions laws, one of the conditions of which was that the company be audited by an independent firm.
The US Department of Justice appoints Forensic Risk Alliance to oversee Binance, the world’s largest cryptocurrency exchange, following a $4.3 billion settlement for violations of money laundering and sanctions laws.
Forensic Risk Alliance to Oversee Binance
The US Department of Justice has chosen the Forensic Risk Alliance (FRA) as the watchdog for Binance Holdings Ltd., the world’s largest cryptocurrency exchange. This decision comes after a rigorous selection process, with several major firms, including Sullivan & Cromwell, in competition for the role.
Binance’s $4.3 Billion Settlement
In November 2023, Binance reached a massive $4.3 billion settlement in the US for violating money laundering and sanctions laws. A key condition of this settlement was that Binance be audited by an independent firm. The appointment of FRA as the auditor is a critical step in ensuring Binance’s compliance with this condition.
Role of the Forensic Risk Alliance
As the auditor, FRA’s role will be to monitor whether Binance is acting in accordance with the settlement terms. The firm will have access to information about Binance’s documents, facilities, and employees. This auditing process is set to continue for three years.
Conclusion
The appointment of the Forensic Risk Alliance to oversee Binance marks a significant development in the crypto exchange’s journey towards regulatory compliance. With the auditing process set to continue for three years, the industry will be watching closely to see how Binance navigates this period of increased scrutiny.
