Crypto News – The 3-Year Effect of FRA Surveillance on Binance
Crypto News – Forensic Risk Alliance (FRA), an international consulting firm, has apparently been hired by the US Department of Justice (DOJ) to make sure cryptocurrency exchange Binance complies with regulations over the next three years. One of the main conditions of Binance’s November 2023 plea agreement, in which it admitted guilt to money laundering and other federal offenses and agreed to pay a $4.3 billion fine, was the appointment of a third-party company to oversee the exchange’s compliance over the following three years.
FRA Selected to Replace Sullivan & Cromwell
As per a Bloomberg story dated May 10, FRA would be able to furnish the DOJ with regular updates on the company’s operations by gaining access to internal records, facilities, and workers. The DOJ appointed FRA instead of the law firm Sullivan & Cromwell, which was apparently first in line for the contract due to the firm’s previous work for competitor cryptocurrency exchange FTX before its bankruptcy. Sullivan & Cromwell was accused by FTX creditors of actively taking part in the “FTX Group’s multibillion-dollar fraud,” according to an article published on Cointelegraph on February 17.
S&C knew of FTX US and FTX Trading Ltd.’s omissions, untruthful and fraudulent conduct, and misappropriation of Class Members’ funds,
a court filing
Sullivan & Cromwell is allegedly expected to be chosen for a different five-year monitoring position for Binance, serving as the Financial Crimes Enforcement Network representative for the Treasury Department.
FAQ
What is the Forensic Risk Alliance?
In order to position multinational corporations for success as they manage investigations, litigation, and compliance difficulties, Forensic Risk Alliance (FRA) is an international consultancy that combines extensive forensic accounting, regulatory, and investigative knowledge with state-of-the-art data mining technologies.
What Does a Plea Agreement Mean?
An agreement between the prosecution and the defendant in which the defendant consents to enter a guilty plea to the allegations against them is called a plea bargain, sometimes referred to as “negotiating a plea.”
Why is Binance Under Surveillance?
Regulators have been investigating Binance, the biggest cryptocurrency exchange in the world, for reportedly not doing enough to stop manipulative trading. Binance established a market surveillance team of internal investigators to tidy up the digital currency exchange in order to be in compliance with authorities.
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