Law Firm Handling FTX’s Bankruptcy Case Expected to Become Binance’s Independent Monitor
New York-based law firm Sullivan & Cromwell, which is currently handling FTX’s bankruptcy case, is expected to be appointed as the independent monitor for Binance Holdings.
The move comes after Binance reached a multibillion-dollar settlement with the US government.
As part of the selection process, former federal prosecutor and firm partner Sharon Cohen Levin is set to lead the monitorship team.
While the appointment has not been officially confirmed, Sullivan & Cromwell is currently at the top of the list, and the Justice Department is nearing approval of the firm for this role, according to a Bloomberg report.
The Department of Justice (DOJ) and the Treasury’s Financial Crimes Enforcement Network imposed monitorships on Binance as part of its guilty plea to anti-money laundering and sanctions charges.
The monitorships would last three and five years, respectively.
The primary responsibility of the monitor is to ensure Binance’s compliance with the terms of its plea agreement and its efforts to address the deficiencies in its anti-money laundering and sanctions programs.
The monitor will have access to various company data, including records, facilities, and employees.
They will utilize this information to conduct reviews and provide periodic reports to the government.
Obtaining a monitorship is highly lucrative for the firms involved, given the extensive workload associated with overseeing a large and complex organization like Binance.
Over the past few months, numerous consulting and law firms have competed for this opportunity.
Binance faces a significant task in bringing its compliance program up to the required standards.
This includes identifying and reporting thousands of suspicious transactions that the Treasury claims
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