The US Department of Justice has chosen Forensic Risk Alliance (FRA) to monitor Binance Holdings for a period of three years, replacing Sullivan & Cromwell, a prominent law firm. This decision follows investigations into Binance's violations of US money-laundering laws and trade sanctions, resulting in a plea deal.

FRA, a specialist in corruption investigations and compliance, will oversee Binance's adherence to the terms of the plea agreement with the DOJ. This entails accessing Binance's internal data, facilities, and staff to report on the exchange's activities to the government. The appointment of FRA was a response to Binance's settlement in November, which involved substantial penalties and the resignation of CEO Changpeng “CZ” Zhao.

The US Justice Department has refrained from providing comments on this matter. Both Sullivan & Cromwell and FRA have not responded to requests for statements, as reported by Bloomberg. FRA's previous experience includes assisting Geneva-based commodities trader Gunvor SA in a significant settlement with the Justice Department related to foreign bribery allegations.

Binance will be under the close watch of Forensic Risk Alliance for the next three years, with substantial financial resources allocated for this purpose. While Sullivan & Cromwell was initially considered for this role, concerns regarding its involvement with FTX led to the selection of FRA. Allegations of failure to detect fraud at FTX and subsequent controversies influenced this decision.

Despite the ongoing scrutiny, Sullivan & Cromwell is anticipated to be appointed by the Treasury Department's Financial Crimes Enforcement Network (FCEN) for a separate five-year monitoring role concerning Binance. Additionally, a ruling on a joint motion to dismiss involving Binance is imminent, with the exchange challenging the US DOJ's stance in the Mango Markets lawsuit regarding the classification of stablecoins as unregistered securities, as revealed by CoinGape.