Binance, the world’s largest cryptocurrency exchange, reached a settlement agreement with the US Department of Justice and other institutions last year, which required Binance to appoint an independent monitor recommended by the US regulatory agency. Now, it has been reported that Sullivan & Cromwell, the New York law firm responsible for the FTX bankruptcy case, will be appointed as the independent monitor for Binance.
According to Bloomberg, a person familiar with the selection process said that Sullivan & Cromwell, the law firm handling the FTX bankruptcy case, is likely to be appointed as the independent monitor for Binance, surpassing numerous lawyers and consultants. Sharon Cohen Levin, a partner at the law firm and former federal prosecutor, is expected to lead the monitoring team for Binance.
Another source revealed that although the appointment has not yet been officially announced, Sullivan & Cromwell is being given priority consideration. The US Department of Justice is close to approving the law firm as the independent monitor for Binance.
The settlement agreement requires the appointment of an independent monitor for Binance. In November last year, Binance reached a settlement agreement with the US Department of Justice and other institutions, pleading guilty and agreeing to pay a $4.3 billion fine. As part of the settlement agreement, the US Department of Justice and the Financial Crimes Enforcement Network of the Treasury Department both required Binance to appoint an independent monitor. The US Department of Justice requires the independent monitor to be maintained for at least 3 years, while the Financial Crimes Enforcement Network requires 5 years.
The role of the monitor is to ensure that Binance complies with its plea agreement and takes measures to address deficiencies in its anti-money laundering and sanctions programs. The monitor will have access to a significant amount of information, including company records, facilities, and employees, and will be responsible for using this information to conduct reviews and submit regular reports to the government.
The report mentioned that obtaining the monitoring rights is a lucrative opportunity for the appointed company, especially considering the amount of work required to oversee a large and complex company like Binance. Many consulting firms and law firms have been vying for this job in the past few months.
Binance has been required to bring its compliance programs up to standard, including reconfirming and reporting tens of thousands of suspicious transactions. The US Treasury Department has accused Binance of deliberately ignoring these suspicious transactions. Changpeng Zhao has admitted to violating banking laws and will be sentenced in April this year.
Sharon Cohen Levin is a recognized expert in anti-money laundering and sanctions. She previously led the Money Laundering and Asset Forfeiture Unit at the US Attorney’s Office in Manhattan and has also represented Goldman Sachs in the 1MDB corruption scandal in Malaysia.
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