Binance is reportedly close to eliminating federal oversight from its record $4.3 billion settlement with the DOJ, potentially ending the three-year compliance monitor requirement imposed in 2023.
By José Rafael Peña Gholam
Editor Marco T. Lanz
Updated
3 mins read
Binance Holdings Ltd. is reportedly close to securing an agreement with the U.S. Department of Justice (DOJ) that would eliminate the compliance monitor requirement from its record $4.3 billion settlement, as reported on September 16. The world’s largest cryptocurrency exchange has been operating under federal oversight since 2023 as part of the most significant enforcement action against a crypto platform.
The compliance monitor was imposed following Binance’s admission to violating anti-money laundering laws and the Bank Secrecy Act. In November 2023, the exchange agreed to pay $4.3 billion in penalties and forfeitures to resolve charges that it failed to prevent money laundering, facilitated transactions with sanctioned entities, and operated without proper licensing.
The settlement required Binance to maintain an independent compliance monitor for three years, with Forensic Risk Alliance selected to oversee the exchange’s operations. The monitor has access to internal documents and evaluates compliance policies while reporting to the DOJ.
Former CEO Changpeng Zhao pleaded guilty to Bank Secrecy Act violations, resigned from his position, and served four months in prison. Zhao also agreed to pay a $50 million fine as part of the agreement.
Federal prosecutors are evaluating Binance’s request to drop the three-year monitoring requirement, though no final decision has been reached. Sources familiar with the discussions indicate that Binance would likely need to implement enhanced compliance reporting standards to meet DOJ expectations if the oversight is removed, according to Bloomberg.
The potential agreement reflects a broader policy shift under the current administration, which has eliminated several corporate monitors appointed previously. DOJ’s Criminal Division head Matthew Galeotti issued guidance earlier this year questioning the effectiveness of mandatory corporate oversight, noting that monitors “can impose substantial expense and interfere with lawful business operations.”
The discussions come as regulatory enforcement approaches have shifted across multiple agencies. The Securities and Exchange Commission has dropped or paused several investigations into crypto companies, including cases involving Binance.
Binance maintains dual oversight through both the DOJ and the Treasury Department agreements, with the Treasury monitor remaining active while the DOJ requirement is under review. The exchange has been working to rebuild its regulatory standing following the settlement, including forming partnerships with traditional financial firms such as Franklin Templeton.
Also, the BNB token reached new all-time highs above $950 following reports of the potential agreement, reflecting market optimism about reduced regulatory oversight. Trading volume and institutional interest have increased as investors view the development as positive for Binance’s U.S. operations.
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José Rafael Peña Gholam is a cryptocurrency journalist and editor with 9 years of experience in the industry. He wrote at top outlets like CriptoNoticias, BeInCrypto, and CoinDesk. Specializing in Bitcoin, blockchain, and Web3, he creates news, analysis, and educational content for global audiences in both Spanish and English.
