HomeBinanceFRA Assumes Responsibility for Explosive Oversight Role

FRA Assumes Responsibility for Explosive Oversight Role

-


Latest Reports: FRA Takes Charge of Binance Monitorship, Sullivan & Cromwell Sidelined

The U.S. Department of Justice has made a significant decision in appointing Forensic Risk Alliance (FRA) to oversee compliance efforts at Binance Holdings Ltd., sidelining the well-known law firm Sullivan & Cromwell. This move comes after concerns were raised about Sullivan & Cromwell’s involvement in the FTX bankruptcy case, which shook the financial world.

FRA, known for its expertise in corruption and fraud investigations, has been tasked with ensuring Binance’s adherence to the stringent conditions laid out in its November plea deal, which includes a hefty $4.3 billion fine. Additionally, the former CEO of Binance, Changpeng Zhao, has agreed to serve a brief prison sentence as part of the agreement.

The DOJ’s decision to choose FRA over Sullivan & Cromwell was influenced by FRA’s prior experience in handling high-stakes international compliance cases, such as its work with Geneva-based Gunvor SA. The newly appointed monitor will have access to Binance’s internal records and personnel to ensure compliance and will report its findings directly to the government.

Sullivan & Cromwell faced setbacks in its bid for the Binance monitorship due to its controversial handling of the FTX bankruptcy proceedings. The firm’s inability to detect fraud and prevent the crypto exchange’s collapse raised concerns among FTX investors and ultimately led to the DOJ’s decision to appoint FRA.

However, Sullivan & Cromwell may have a chance at redemption, as it is reportedly under consideration by the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) for a separate five-year monitorship. In this role, the firm would focus on identifying and reporting suspicious activities previously overlooked by Binance.

The appointment of FRA and the controversy surrounding Sullivan & Cromwell highlight the importance of strong compliance measures in the financial world, especially in the rapidly evolving cryptocurrency industry. Stay tuned for more updates on this developing story.

LATEST POSTS

Bitcoin Attracts Major New Investor – Should You Consider Following Suit?

Billionaire's Bitcoin Investment Plan: A Fundamental Approach to Volatile Assets Billionaire Jack Dorsey's Bitcoin Investment Plan Could Spark Institutional Adoption In a bold move that could...

aelf Reveals Groundbreaking Upgrades to Advance Blockchain Technology

Revolutionizing Blockchain Technology: Introducing Multitoken Contracts and NFT Aliases by aelf In a groundbreaking announcement made via social media platform X, aelf, a prominent player...

Forecast for the Crypto Market in May 2024 – Forbes Advisor

Analysis of Cryptocurrency Market Trends and Regulatory Developments in April Bitcoin and other cryptocurrencies have hit a roadblock as investors are not seeing the expected...

SEC Chair Gary Gensler refrains from directly categorizing Ethereum

SEC Chairman Gary Gensler Discusses Ethereum's Classification and Regulatory Concerns SEC Chairman Gary Gensler's recent comments on Ethereum have sparked a debate in the crypto...

Most Popular