Binance Engages Prominent Legal Firm in Response to SEC, Demonstrating Commitment to Transparency

Binance, one of the leading cryptocurrency platforms globally, has made a strategic move by enlisting the services of prestigious New York law firm Sullivan and Cromwell for independent monitoring. This decision comes in the wake of Binance’s recent interactions with the U.S. government, which led to various allegations against the platform.

Among the numerous legal firms that were vying for the opportunity, Sullivan and Cromwell emerged as the chosen entity to closely scrutinize Binance’s operations. Their primary responsibility will be to supervise the implementation of measures, with a particular focus on Binance’s compliance with anti-money laundering regulations.

Binance has been under scrutiny since 2018 for its adherence to these regulations and pleaded guilty in 2023 to violating sanctions. As part of the monitoring process, Binance will need to enhance its security measures and align with legal requirements, reporting any suspicious transactions that may have occurred over the years. Sharon Cohen Levin will lead this operation.

In addition to the monitoring efforts, Binance’s founder Changpeng Zhao, also known as CZ, is currently facing money laundering allegations from the U.S. Securities and Exchange Commission. As negotiations with authorities continue, CZ is being considered for a board position. However, his sentencing, initially scheduled for February, has been postponed to late April for undisclosed reasons. CZ remains free on a $175 million bond, awaiting further legal proceedings.

Although the Department of Justice has yet to officially confirm Sullivan and Cromwell’s role as watchdogs, their potential oversight promises greater control over Binance’s activities and a crucial role in overseeing the ongoing agreement. This partnership signifies a significant step towards transparency and legal compliance in the cryptocurrency industry.

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