Binance Monitorship by Sullivan & Cromwell
Following a multibillion-dollar settlement with the US government, New York-based law firm Sullivan & Cromwell is poised to be designated as the independent monitor for Binance Holdings Ltd. It is expected that this decision will bring significant benefits to the law firm.
Sources familiar with the matter told Bloomberg that Sullivan & Cromwell has emerged as the leading contender for the prestigious monitorship role. The firm’s partner and former federal prosecutor, Sharon Cohen Levin, will lead the monitorship team, providing formidable expertise to the task at hand.
Although not officially confirmed, Sullivan & Cromwell is reportedly at the forefront of considerations for this crucial role, pending approval from the Department of Justice (DOJ). Monitorships present lucrative prospects for firms selected for such roles, particularly considering the substantial workload involved in overseeing a company as expansive as Binance.
The primary responsibility of the monitor is to verify Binance’s adherence to its plea agreement and to oversee the implementation of measures aimed at rectifying deficiencies in its anti-money laundering and sanctions protocols. The monitor will have access to a wide array of information and will use this data to conduct assessments and provide periodic reports to the government.
The $4.3 Billion Settlement
Late last year, Binance pleaded guilty to charges related to anti-money laundering and sanctions violations. As a result, it agreed to pay $4.3 billion to resolve a lengthy investigation led by federal prosecutors and regulators. Both the Justice Department and the Treasury’s Financial Crimes Enforcement Network imposed monitorships on Binance, spanning three and five years, respectively.
Binance now faces the significant task of enhancing its compliance program and founder Changpeng Zhao pleaded guilty to violating banking regulations and is facing a sentence, recently delayed to April.
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