US Department of Justice Reevaluates Law Firm Choice for Binance Monitorship amid Controversy

The US Department of Justice (DOJ) is facing a dilemma in selecting a law firm to oversee the cryptocurrency exchange Binance as an independent monitor. The initial choice of Sullivan & Cromwell has come under scrutiny due to the firm’s previous work for the now-bankrupt FTX exchange.

Sullivan & Cromwell’s involvement with FTX, which filed for bankruptcy in November 2022, has raised concerns within the DOJ about their suitability for the monitorship role. The firm has been criticized for allegedly failing to detect fraudulent activities by FTX co-founder Sam Bankman-Fried, who was recently sentenced to 25 years in prison for embezzling billions of dollars from customers.

The ongoing investigation into Sullivan & Cromwell’s work for FTX has caused delays in the selection process for a monitor to oversee Binance. Both the US government and Binance had committed to choosing a monitor within 60 business days following Binance’s plea agreement in November.

The monitor’s role is crucial in ensuring Binance’s compliance with the terms of the agreement, which includes identifying and reporting tens of thousands of previously missed suspicious activity transactions. The exchange’s native token, BNB, has seen a notable price decrease, reflecting the uncertainty surrounding the monitorship selection.

As the DOJ explores alternative options for the monitorship, the cryptocurrency community awaits further developments in this high-stakes situation. Stay tuned for updates on this evolving story.