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📌 Forensic Risk Alliance appointed to oversee regulatory compliance at Buyanance after $4.3 billion plea deal.

The US Department of Justice (DOJ) has appointed Forensic Risk Alliance (FRA) to oversee cryptocurrency exchange Binances compliance with regulatory standards. Fra

– The US Department of Justice (DOJ) has appointed Forensic Risk Alliance (FRA) to oversee cryptocurrency exchange Binance’s compliance with regulatory standards.

This comes after Binance pleaded guilty to money laundering and other federal crimes in November 2023 and was fined $4.3 billion.

According to a May 10 Bloomberg report, the three-year partnership with the FRA includes a thorough investigation of Binance’s internal records, its facilities and interactions with employees, as well as keeping the DOJ apprised of its compliance status.

Law firm Sullivan and Cromwell was originally listed as a contender for the oversight contract because of its prominence in the field.

However, its past association with bankrupt cryptocurrency exchange FTX influenced the DOJ’s decision to choose FRA instead.

The decision came amid allegations of Sullivan and Cromwell’s involvement in the FTX group’s fraudulent activities, as reported by Cointelegraph on Feb. 17.

According to a class action lawsuit filed by FTX’s creditors, the company had prior knowledge of FTX’s deceptive practices and allegedly lost customer funds as a result.

Despite the controversy, Sullivan and Cromwell is expected to sign another five-year contract to monitor Binance under the auspices of the U.S. Treasury Department’s Financial Crimes Enforcement Network.

The conviction was for failing to implement an effective anti-money laundering program at the exchange.

The prosecution sought three years in prison, but the judge reduced the sentence on the grounds that there was no evidence that Zhao had direct knowledge of Binance’s specific illegal activities.

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