Binance Forms Partnership with U.S. Government, Enlists Leading Law Firm as Oversight Body

Binance, one of the largest cryptocurrency networks in the world, is set to be independently monitored by the renowned New York law firm Sullivan and Cromwell. This decision follows Binance’s recent agreement with the US government regarding allegations against the crypto giant.

Given the extensive scale of Binance’s operations, numerous legal and law firms vied for the opportunity to oversee their activities. However, Sullivan and Cromwell emerged victorious and will closely scrutinize the company’s actions.

The law firm underwent a thorough vetting process by the US Justice Department, which had initially proposed penalties amounting to over $4 billion to resolve an investigation spanning several years. Binance has been under investigation since 2018 for its compliance with anti-money laundering regulations and, in 2023, pleaded guilty to charges of violating sanctions.

With the deal in place, Sullivan and Cromwell will now supervise Binance’s implementation of measures, particularly those related to anti-money laundering protocols. Their task is to enhance the company’s security and ensure its compliance with the law, while also reporting any illicit transactions that may have occurred over the years. The entire operation will be overseen by supervisor Sharon Cohen Levin, according to reliable sources.

Interestingly, Changpeng Zhao, popularly known as CZ and the founder of Binance, has been listed as a nominee for the position of board member during the agreement between the authorities and the company. CZ is currently facing money laundering charges by the US Securities and Exchange Commission. His sentencing, originally scheduled for February, has been postponed to late April for undisclosed reasons. CZ is currently free on a $175 million release bond in the US, awaiting further legal proceedings.

Although the Department of Justice has yet to officially appoint the law firm as the official watchdog, the monitorship will not only provide a greater level of control over Binance’s activities but will also play a crucial role in ensuring compliance with the terms of the agreement.

Tags: Binance