According to reports, Forensic Risk Alliance (FRA) which is an international consultancy firm has been given the responsibility to keep a check on Binance, a cryptocurrency exchange to make sure that Binance is meeting all the regulatory requirements for the next three years by The United States Department of Justice (DOJ).
Binance Plea Deal of 2023
- It was decided in the Binance plea deal of November 2023- that the company is going to be under surveillance for the next three years because of the law charges that it faced.
- In November 2023, the company was ruled guilty of money laundering and other federal charges along with facing a $4.3 billion fine. The Binance news made headlines at that time.
- According to the reports by Bloomberg, Forensic Risk Alliance will provide all the information about the company’s employees, internal records and office happenings to The United States Department of Justice to ensure that nothing illegal happens.
S&C And DOJ
At first, the DOJ had decided to appoint Sullivan & Cromwell (S&C), a law firm, to keep a check on Binance but then it decided to go with FRA instead because of a reason.
The reason is that according to a report, the law firm was accused of working with the crypto exchange FTX which was found guilty of a multibillion-dollar fraud.
The creditors said that “S&C knew of FTX US and FTX Trading Ltd.’s omissions, untruthful and fraudulent conduct, and misappropriation of Class Members’ funds,” in the court hearing as members of the class-action lawsuit.
Even then, it is being said that Sullivan & Cromwell will be considered for a different Binance surveillance project which will be for 5 years. It will mainly include the information about Treasury Department’s Financial Crimes Enforcement Network.
Binance CEO’s Role In The Fraud
On April 30, Binance CEO Changpeng Zhao resigned as the crypto exchange pleaded guilty to violating the laws of US Anti Money Laundering. Zhao was given a sentence of four months imprisonment by the court.
He was imprisoned for failing to run an Anti-Money laundering program at his company, Binance. The report came out weeks after Zhao’s imprisonment.
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