The post Binance Strikes Deal with U.S. Government, Appoints Top Law Firm as Watchdog appeared first on Coinpedia Fintech News
Binance, one of the world’s largest cryptocurrency networks, will be monitored independently by the well-known law firm Sullivan and Cromwell, based in New York. This move comes after the crypto giant had a deal with the U.S. government with its allegations.
Knowing the massive volume of Binance and its operations, many legal and law firms were competing for this position. But Sullivan and Cromwell won the race and will closely surveil their activities.
The Authority Vetted the Law Firm
The U.S. Justice Department had proposed over $4 billion in penalties to resolve an investigation spanned several years. Binance has been under investigation since 2018 for its compliance with anti-money laundering regulations and 2023 pleaded guilty to charges of sanction violations.
After years of watching its conformity over the deal, Sullivan and Cromwell supervise its execution of measures, especially the anti-money laundering conventions applied.
Over the shoulder of Binance is to enhance its security and compliance with the law and report the malicious transactions that have occurred over the years. The whole operation will be headed by a supervisor, Sharon Cohen Levin according to the resources.
CZ in the list of nominees amidst his hearing of criminal sentencing
As the insiders mentioned to Bloomberg, Changpeng Zhao infamously known as CZ who is the founder of Bianace is included in the list for the position of board member during the agreement between the authorities and Binance. CZ is charged with money laundering by the U.S. Securities and Exchange Commission.
Zhao’s sentencing was scheduled to happen by the end of February but is now delayed to late April by the court due to unmentioned reasons. He is free on a $175 million release bond in the United States and awaits further legal proceedings.
Though the DOJ has yet to appoint the firm as the watchdog officially, the monitorship will not only help in a deeper level of control over the company activities but will play a pivotal role in checking the agreement’s position.