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Sujit Kumar
May 11, 2024
by Sujit Kumar

DOJ Appoints FRA to Monitor Binance Compliance

Binance Compliance

Table of contents

  1. Monitoring Agreement Details
  2. Shift in Monitoring Selection
  3. Legal Ramifications for Binance
  4. Sentencing of Former Binance CEO
  5. Continued Regulatory Oversight
The US Department of Justice has designated Forensic Risk Alliance (FRA) to supervise Binance's adherence to regulatory standards over the next three years, following its plea deal and $4.3 billion fine.

Monitoring Agreement Details

FRA will conduct thorough assessments of Binance's operations, including access to internal records, premises, and personnel, to provide regular updates to the government on the exchange's compliance efforts.

Shift in Monitoring Selection

Initially considered for the monitoring role, law firm Sullivan and Cromwell lost out to FRA due to concerns over its prior involvement with a competitor exchange, FTX, amidst allegations of fraud.

Legal Ramifications for Binance

Binance's plea deal and subsequent appointment of FRA underscore the heightened scrutiny and legal consequences faced by cryptocurrency exchanges for regulatory non-compliance.

Sentencing of Former Binance CEO

The appointment of FRA comes in the wake of the sentencing of Binance's former CEO, Changpeng "CZ" Zhao, to four months in prison for lapses in maintaining effective Anti-Money Laundering measures.

Continued Regulatory Oversight

While Binance navigates regulatory challenges, ongoing monitoring efforts reflect a broader trend of increased regulatory scrutiny within the cryptocurrency industry, signaling a shift towards compliance and accountability.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Binance Compliance
DOJ Appoints FRA to Monitor Binance Compliance
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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