The US Department of Justice appoints external observer for Binance
The US Department of Justice has appointed an external observer for the crypto exchange Binance as part of an agreement with the US authorities. The external controller is the company Forensic Risk Alliance, specializing in investigating corruption and fraud. Forensic Risk will have full access to all internal servers, reports, employee data, and premises of Binance. This decision was made to ensure transparency and compliance with the terms of the deal between the exchange and the US government.
Forensic Risk Alliance to oversee Binance operations
Forensic Risk Alliance has previously worked on other significant cases, such as the oil trader Gunvor, who also reached an agreement with the US authorities after allegations of bribery. Initially, the observer was supposed to be the law firm Sullivan & Cromwell, known for their work with the cryptocurrency exchange FTX before its bankruptcy. However, the Department of Justice may now involve S&C to collaborate with the Financial Crimes Enforcement Network (FinCEN). Under the new agreement, Binance is required to provide reports based on specific requirements.
Binance faces scrutiny amid market manipulation allegations
It is also worth noting that Binance recently fired the head of the investigations department after market manipulation was uncovered by a major market maker, DWF Labs. This event highlights the need for strict control and transparency in the operation of the crypto exchange, especially against the backdrop of new requirements from US regulators.
