The United States Department of Justice (DOJ) has appointed Forensic Risk Alliance (FRA) as the independent monitor for the cryptocurrency exchange Binance, according to Bloomberg sources. FRA, a London-based firm specializing in forensic accounting and compliance consulting, won the position over Sullivan & Cromwell. As part of its plea deal with the DOJ, Binance must undergo a three-year monitorship to ensure legal compliance and transparency.

A monitorship involves a third-party expert ensuring that a company adheres to regulatory requirements, and in this case, FRA will oversee Binance's compliance. Analysts predict that this monitorship will be challenging for Binance, requiring significant internal resources, but may ultimately allow the exchange to re-enter markets it was previously excluded from.

Sullivan & Cromwell, a New York City-based law firm, offers expertise in bank regulation, digital assets, economic sanctions, and financial crimes. However, the firm is currently facing a class-action lawsuit from FTX creditors, who allege that the firm was too closely tied to the exchange before its collapse.

In November 2023, Binance agreed to a plea deal with the DOJ, which included a $4 billion fine and the resignation of CEO Changpeng 'CZ' Zhao, who also pleaded guilty to violating the Bank Secrecy Act and faces a four-month jail sentence. On May 9, the Canadian financial regulator FINTRAC fined Binance an additional $4.4 million USD for alleged violations of money laundering rules. FRA and Sullivan & Cromwell were approached for comment.