A significant development has emerged following U.S. government penalties against cryptocurrency giant Binance. New York law firm Sullivan & Cromwell is poised to snag the coveted role of an independent monitor, overseeing Binance’s compliance with its hefty settlement.
Sullivan & Cromwell, a law firm that handled the FTX bankruptcy case, is reportedly leading the considerations for the monitorship. Sources familiar with the situation report that Sullivan & Cromwell enjoys a significant lead in the selection process, positioning them for a prestigious and lucrative role. However, final approval rests with the Department of Justice, ensuring a careful and thorough selection process.
If approved, Sullivan & Cromwell’s partner and former federal prosecutor, Sharon Cohen Levin, will lead the monitorship team, bringing formidable expertise to oversee Binance’s adherence to its plea agreement. Monitorships have become sought-after opportunities for law firms due to the substantial workload involved in overseeing a company as expansive as Binance, with numerous consulting and law firms vying for the role in recent months.
The key task of the monitor will involve confirming Binance’s adherence to the plea agreement and overseeing the execution of measures designed to address shortcomings in its anti-money laundering and sanctions protocols. The monitor will be granted access to an extensive range of information, encompassing the company’s records, facilities, and personnel. This information will be utilized to conduct evaluations and furnish regular reports to the government.
This development follows Binance’s guilty plea last year to charges related to anti-money laundering and sanctions violations, resulting in a $4.3 billion settlement. The Justice Department and the Treasury’s Financial Crimes Enforcement Network imposed monitorships spanning three and five years, respectively, as part of the settlement terms.
Binance is currently confronted with a significant challenge as it endeavors to strengthen its compliance program. This task includes the intricate process of identifying and reporting tens of thousands of suspicious transactions. The complexity of this undertaking underscores the gravity of the company’s commitment to rectifying its protocols.
Furthermore, the founder of Binance, Changpeng Zhao, has recently pleaded guilty to violating banking regulations. His sentencing, originally scheduled sooner, has been delayed until April. The upcoming decision on the appointment of Sullivan & Cromwell as the independent monitor holds the potential to play a pivotal role in shaping Binance’s future compliance initiatives, contributing to the restoration of trust within the cryptocurrency industry.
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