{"id":283824,"date":"2024-04-16T04:15:56","date_gmt":"2024-04-15T22:45:56","guid":{"rendered":"https:\/\/dripp.zone\/news\/binance-monitor-decision-delayed-over-law-firm-controversy-crypto-news\/"},"modified":"2024-04-16T04:16:01","modified_gmt":"2024-04-15T22:46:01","slug":"binance-monitor-decision-delayed-over-law-firm-controversy-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/binance-monitor-decision-delayed-over-law-firm-controversy-crypto-news\/","title":{"rendered":"Binance Monitor Decision Delayed Over Law Firm Controversy – Crypto News"},"content":{"rendered":"

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The Department of Justice (DOJ) has postponed its decision to appoint Sullivan & Cromwell as the independent monitor for<\/span> Binance<\/span><\/a>, citing concerns over the law firm\u2019s previous association with FTX. Sullivan & Cromwell was on the brink of being selected to oversee Binance\u2019s compliance with a settlement involving a $4.3 billion penalty for violating U.S. anti-money laundering laws and sanctions regulations. This role was part of an agreement with both the DOJ and the <\/span>Treasury\u2019s Financial Crimes Enforcement Network<\/span><\/a> (FinCEN).<\/span><\/p>\n

The delay is due to Sullivan & Cromwell\u2019s involvement in handling legal matters for FTX before and after its bankruptcy in November 2022. The law firm\u2019s role and capabilities in overseeing compliance have drawn scrutiny and criticism, particularly concerning its previous association with FTX. Despite FinCEN\u2019s inclination towards selecting Sullivan & Cromwell, DOJ officials are now exploring alternative candidates for the monitorship.<\/span><\/p>\n

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DOJ Reconsiders Sullivan & Cromwell for Binance Monitoring<\/strong><\/h2>\n

Sullivan & Cromwell\u2019s tenure with FTX involved collecting over $170 million in fees related to bankruptcy proceedings, where the firm was tasked with locating assets worth billions of dollars. Despite assurances from an <\/span>FTX attorney<\/span><\/a> to a bankruptcy court regarding creditors\u2019 potential full recovery, Sullivan & Cromwell has faced legal challenges from FTX customers. Moreover, the law firm is currently under examination by a bankruptcy investigator for its pre-collapse services.<\/span><\/p>\n

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FTX\u2019s co-founder, <\/span>Sam Bankman-Fried<\/span><\/a>, recently sentenced to 25 years, implicated Sullivan & Cromwell, among others, in his defense. Despite these allegations, the law firm maintains that its involvement with FTX was limited, a stance supported by the exchange\u2019s new management. FTX\u2019s current leadership contests the credibility of Bankman-Fried\u2019s accusations. The controversy surrounding Sullivan & Cromwell\u2019s association with FTX has prompted the DOJ to reassess its suitability as Binance\u2019s independent monitor.<\/span><\/p>\n

Monitor\u2019s Responsibilities and Regulatory Compliance<\/strong><\/h2>\n

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The monitor appointed for Binance will be tasked with conducting a comprehensive review of the company\u2019s adherence to regulatory requirements. This includes inspecting internal documents and directly interacting with staff to ensure full compliance with the agreed legal stipulations. The monitor\u2019s role is crucial in overseeing Binance\u2019s compliance efforts, particularly in light of the significant penalties imposed for previous breaches of anti-money laundering laws and sanctions regulations.<\/span><\/p>\n

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Read Also:<\/b> Elon Musk X Targets Bots on X With New User Posting Fee<\/span><\/a><\/p>\n

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good. <\/p>\n<\/p><\/div>\n

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