Binance is close to reaching an agreement that could free it from compliance oversight imposed by the US Department of Justice.
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According to sources familiar with the matter, Binance Holdings Ltd., the world's largest cryptocurrency exchange, is reportedly close to reaching a potential agreement with the US Department of Justice that may remove a key regulatory requirement from its previous $4.3 billion settlement—that is, ongoing compliance monitoring by an external institution.
Reportedly, US federal prosecutors are negotiating with Binance on whether to remove the requirement for an external compliance monitor. Media analysis suggests that if this requirement is ultimately dropped, it would mark the latest move by the Department of Justice to relax corporate oversight. Previously, some monitors appointed by the Biden administration have been removed, and the DOJ is broadly adjusting its stance on “external monitoring.”
In 2023, Binance paid a $4.3 billion fine to settle with US authorities—the largest corporate fine in US history. Since then, Binance has been striving to win the trust of US regulators.
Binance founder Changpeng Zhao pleaded guilty as part of the settlement and served four months in prison. In a podcast this May, he revealed he is seeking a pardon from Trump. Media reports also state Binance has participated in developing a stablecoin issued by World Liberty Financial Inc., a company affiliated with the Trump family.
The DOJ has not yet made a final decision on whether to drop the monitor. The original monitoring agreement is for three years. Even if external monitoring is canceled, Binance may still need to strengthen compliance reporting to obtain the DOJ’s approval.
External Oversight May Be Relaxed
Media report that the DOJ is evaluating whether to drop the requirement for external monitors for some companies. Previously, some companies have complained that such oversight is costly and disrupts normal business operations.
For a long time, the DOJ has regarded “monitors” as an important tool to prevent corporate recidivism, applicable to bribery, money laundering, and other violations. Earlier this year, Matthew Galeotti, the new head of the DOJ’s criminal division, noted in a memo that while the monitor regime does reduce recidivism, “it can also result in high costs and interfere with normal business operations.”
Court records show that the DOJ has already terminated monitor agreements for three companies during the Biden administration. For example, the DOJ decided not to require external monitors for two subsidiaries of Glencore Plc. According to the company’s annual report, monitoring these two subsidiaries cost a combined $142 million from 2023 to 2024.
For two other companies—NatWest Group’s UK banking subsidiary and shipbuilder Austal USA—the original external monitor requirement was replaced by strengthened compliance reporting.
Binance’s Dual Monitoring
Binance had initially agreed in its plea agreement to be overseen by two independent monitors: one from the DOJ and another from the Financial Crimes Enforcement Network (FinCEN), a bureau of the US Treasury. The monitor appointed by FinCEN is still in place. In April, reports emerged that Binance had tried to persuade the Treasury Department to drop the monitoring requirement in their settlement.
It is noteworthy that the crypto industry contributed substantial political donations during the last election to Trump and also funded a group of pro-crypto Congressional candidates. After Trump became president, he appointed several federal regulators friendly to cryptocurrencies and passed some industry-backed executive orders, such as providing banking access for crypto companies. During the Trump administration, the US Securities and Exchange Commission (SEC) also suspended or dropped several investigations into crypto companies, including Binance.
However, the DOJ has not canceled external monitors for all companies. For example, after a US subsidiary of Toronto-Dominion Bank became the first US bank to plead guilty to money laundering conspiracy charges, the DOJ decided to keep its monitor in place.
Another involved company, Balfour Beatty Communities LLC, originally had its monitor agreement set to expire in September this year. The DOJ recently announced it would extend the term to June 2026 to allow more time to test the company’s internal controls and compliance program. The company admitted in 2021 to defrauding the US military.
The Boeing Case Draws Attention
“External monitoring” became a flashpoint in the DOJ’s case against Boeing. The DOJ had originally required an independent monitor under a plea agreement with Boeing due to the two 737 Max crashes. However, a Texas judge rejected the deal because “monitor selection criteria involved diversity and inclusiveness.”
In May this year, the DOJ and Boeing announced a provisional agreement allowing Boeing to avoid criminal prosecution and instead cooperate with a “compliance adviser” rather than assigning an independent monitor with mandatory certification authority.
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