Forensic Risk Alliance Takes the Helm as Binance’s Outside Monitor, Following Guilty Plea for Money-Laundering and Trade Sanctions Violations by the Justice Department
Insider reports reveal that the Forensic Risk Alliance (FRA) has emerged victorious in a fierce battle for a confidential case, beating out heavyweight contenders such as Wall Street powerhouse Sullivan & Cromwell. Sources, who prefer to remain anonymous, spilled the beans on this thrilling development.
The silence was deafening as the Justice Department, Sullivan & Cromwell, and FRA remained tight-lipped, refusing to comment on the latest developments. All eyes were on Binance, the world’s leading cryptocurrency exchange, as they had just been hit with a monumental $4.3 billion penalty as part of their plea agreement from November.
Founder Changpeng Zhao’s shocking guilty plea and subsequent resignation as CEO, with a looming four-month prison sentence starting on April 30th.
Experience the power of transparency and accountability as FRA partners with Binance to uphold the terms of their plea agreement. With unparalleled expertise in corruption and fraud investigations, FRA will have full access to Binance’s internal records, facilities, and employees to provide thorough reports to the government.
This comes after FRA’s successful role as a consultant for the Geneva-based commodities giant, Gunvor SA, in their $660 million resolution with the Justice Department for foreign bribery charges.
Sullivan & Cromwell, the once-prominent contender, was met with unexpected challenges in its pursuit of a key role. The firm’s connection to FTX, a fierce competitor of Binance, caused quite a stir. Prior to its collapse in November 2022, FTX had relied on Sullivan & Cromwell as its primary legal counsel, sparking unease among those involved.
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FTX’s collapse left a trail of angry critics, some of whom were counting their losses. They pointed fingers at Sullivan & Cromwell, accusing the legal giants of turning a blind eye to co-founder Sam Bankman-Fried’s fraudulent activities. But amidst the chaos, FTX’s new management stepped up to defend the firm, hailing its swift recovery efforts. A battle of words ensued, with the fate of FTX hanging in the balance.
In a move that puts customers first, the company has declared that it will not only cover any losses incurred in the recent bankruptcy, but also provide interest on top.
And while they may not have been chosen as the outside monitor, Sullivan & Cromwell is expected to snag a coveted five-year monitorship with Binance, acting on behalf of the Treasury Department’s Financial Crimes Enforcement Network.