Justice Department Selects Forensic Risk Alliance to Monitor Binance

As an experienced financial analyst, I believe this decision by the Justice Department to appoint Forensic Risk Alliance (FRA) as the monitor for Binance Holdings Ltd. is a prudent one. FRA’s expertise in fraud investigations and compliance makes them well-suited for the role of ensuring Binance adheres to the terms of their plea deal. The fact that the DOJ rejected Sullivan & Cromwell, despite their initial favoritism towards them, speaks volumes about the importance of choosing a firm with a proven track record in this area.

The Justice Department has selected Forensic Risk Alliance to supervise Binance Holdings Limited, a company that admitted to breaching American anti-money laundering regulations and trade restrictions.

FRA, which focuses on fraud probes and maintaining regulatory standards, has been given permission to explore Binance’s inner workings, including records, premises, and personnel. Their objective is to see that Binance complies with the conditions set forth in the plea agreement.

After the Department of Justice (DOJ) declined Sullivan & Cromwell’s application for the monitorship role, this selection is now in contention. Insiders suggest that Sullivan & Cromwell’s past engagements with certain entities might have influenced their disqualification from the position.

As a crypto investor, I’ve been following the developments surrounding FTX and its collapse in November 2022 with great interest. It’s no secret that this rival exchange has had an impact on recent events. Now, with new management in place at FTX, Sullivan & Cromwell have found themselves under scrutiny for supposedly not detecting any fraudulent activities by FTX co-founder Sam Bankman-Fried. However, the new leadership at FTX has come forward to defend Sullivan & Cromwell against these accusations.

As FRA takes over the DOJ’s role in overseeing Binance, Sullivan & Cromwell remains a possible choice for a separate five-year monitoring contract with the Financial Crimes Enforcement Network (FinCEN) of the US Treasury Department. During this assignment, Sullivan & Cromwell would concentrate on discovering and reporting past suspicious transactions that were supposedly disregarded by Binance.

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2024-05-10 21:40