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News

New Binance Independent Monitor Is The Law Firm Handled The FTX Bankruptcy Case

February 16, 2024 - Around 2 mins mins to read

Key Points:

  • The prestigious law firm is set to Binance independent monitor compliance after its multibillion-dollar settlement.
  • Binance’s agreement includes independent monitoring to ensure adherence to anti-money laundering laws.
New York law firm Sullivan & Cromwell, already handling FTX’s bankruptcy case, is poised to become the independent monitor for Binance Holdings.
New Binance Independent Monitor Is The Law Firm Handled The FTX Bankruptcy Case

Sullivan & Cromwell Appointed Binance Independent Monitor After Multibillion-Dollar Settlement

The appointment follows Binance’s recent multibillion-dollar settlement with the US government, resolving charges of anti-money laundering and sanctions violations.

According to Bloomberg, Sullivan & Cromwell is the leading contender for this critical role, ahead of a competitive field of legal and consulting firms. If confirmed, former federal prosecutor Sharon Cohen Levin, a partner at Sullivan & Cromwell, is expected to lead the monitoring team.

While the appointment is pending official approval, Sullivan & Cromwell is reportedly at the forefront of the list, with the Justice Department nearing finalization. Both Binance and Sullivan & Cromwell have yet to comment on the matter.

Binance’s settlement agreement includes provisions for independent monitorships lasting three and five years, imposed by the Justice Department and the Treasury’s Financial Crimes Enforcement Network, respectively. The responsibilities of Binance independent monitor involve ensuring Binance’s compliance with the plea agreement and addressing deficiencies in its anti-money laundering and sanctions programs.

Regulatory Compliance Efforts Intensify: Binance Prepares for Monitoring

Binance independent monitor role presents a lucrative opportunity for Sullivan & Cromwell, given the extensive workload involved in overseeing a company as large and complex as Binance. The firm’s involvement in FTX’s bankruptcy case underscores its experience in handling high-profile legal matters within the cryptocurrency industry.

Binance faces significant challenges in enhancing its compliance program, including the identification and reporting of tens of thousands of previously overlooked suspicious transactions. Additionally, Binance’s founder, Changpeng Zhao, has pleaded guilty to violating banking laws and is awaiting sentencing in April.

Sullivan & Cromwell’s potential appointment as Binance independent monitor marks another significant development in the ongoing regulatory scrutiny facing major players in the cryptocurrency space.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Binance

CFTC

Changpeng Zhao

FTX

SEC

Sharon Cohen Levin

Sullivan & Cromwell

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.