DOJ Appoints FRA to Oversee Binance Following $4.3 Billion Settlement

The U.S. Department of Justice (DOJ) has selected Forensic Risk Alliance (FRA) to oversee cryptocurrency platform Binance following its admission of violating U.S. anti-money laundering laws, resulting in a hefty $4.3 billion fine. FRA was chosen over Sullivan & Cromwell due to the latter’s involvement with the failed crypto exchange FTX. This decision has been well-received by the legal and crypto communities, who criticized Sullivan & Cromwell for failing to detect significant fraud at FTX.

FRA’s role involves extensive oversight over Binance’s internal operations to ensure compliance with U.S. regulations. They will have full access to the company's records, facilities, and personnel, and must report directly to the U.S. government.

Despite this DOJ setback, Sullivan & Cromwell may still secure a role with the Financial Crimes Enforcement Network to monitor Binance's compliance with transaction reporting rules. Meanwhile, Binance is also facing penalties outside the U.S., having agreed to fines in India and received a $4.4 million fine in Canada for failing to meet anti-money laundering regulations.