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📌 Binance will be overseen by the FRA for the next three years

The US Department of Justice (DOJ) has appointed global consulting firm Forensic Risk Alliance (FRA) to ensure cryptocurrency exchange Binances regulatory compliance for the next three years, sources said. Ftx

– The US Department of Justice (DOJ) has appointed global consulting firm Forensic Risk Alliance (FRA) to ensure cryptocurrency exchange Binance’s regulatory compliance for the next three years, sources said.

Appointing a third-party firm to oversee the exchange’s regulatory compliance over the next three years was one of the key requirements of Binance’s November 2023 plea deal.

According to a May 10 Bloomberg report, FRA will be given access to internal documents, facilities and employees to provide Dwith up-to-date information on the company’s operations.

Law firm Sullivan and Cromwell was reportedly originally the first candidate for the contract, but because it had previously worked with rival cryptocurrency exchange FTX before its bankruptcy, the DOJ appointed FRA instead.

On February 17, Cointelegraph reported that FTX’s creditors alleged that Sullivan and Cromwell were actively involved in the “multi-billion dollar FTX Group fraud.”

‘Sand C. knew of the omissions, dishonest and fraudulent conduct of FTX US and FTX Trading Limited and the misappropriation of group members’ funds,’ the class action documents filed with the court said.”

However, Sullivan and Cromwell will reportedly be selected as representatives of the Treasury’s Financial Crimes Enforcement Network for another five-year role in monitoring Binance.

The appointments come weeks after former Binance CEO Changpeng “CZ” Zhao was sentenced to prison.

Zhao was sentenced to four months in prison on April 30 for failing to provide an effective anti-money laundering program at the crypto exchange.

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