DOJ Reevaluates Potential Binance Monitor Amid FTX Links
The DOJ is reconsidering the appointment of the independent monitor for Binance due to the monitor's prior involvement with the now-bankrupt FTX exchange.
April 16, 2024
DOJ Reviewing Binance Monitorship
In light of concerns regarding potential conflicts of interest, the US Department of Justice is reassessing which law firm should monitor the cryptocurrency exchange Binance. The reevaluation comes as the selected firm, Sullivan & Cromwell, previously represented the now-defunct FTX exchange, which shared dealings with Binance.
FTX Association Leading to Criticism
Sullivan & Cromwell's role in the FTX bankruptcy and their hefty billings have drawn criticism, especially as they were unable to detect fraudulent actions by FTX's founders. This situation has put the firm's candidacy for the Binance monitorship, and the DOJ's decision-making process, under scrutiny.
Binance Compliance and Market Impact
The role of the independent monitor is to ensure Binance complies with anti-money laundering regulations and trade sanctions as per the agreement with US authorities. Current market analyses show that Binance's native token, BNB, is experiencing a downward trend amidst these developments.
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