Binance in Talks with DOJ to End Three-Year Compliance Oversight
TLDR
Binance is in discussions with the U.S. Department of Justice to remove its three-year compliance monitor.
The compliance monitor was imposed after Binance admitted to failing in preventing money laundering.
The DOJ has not yet made a decision on whether to eliminate the oversight condition.
This move could signal a shift in how corporate monitorships are applied in DOJ settlements.
The Binance case is the largest enforcement action ever taken against a cryptocurrency exchange.
Binance Holdings Ltd. is reportedly negotiating with the U.S. Department of Justice (DOJ) to remove a key oversight condition. This condition, imposed after the company admitted to money laundering violations, is part of its record $4.3 billion settlement. The DOJ has not yet made a decision on the matter, but the discussions mark a critical moment for Binance.
Binance Settlement May Signal Shift in Oversight
The DOJ’s potential move to reduce or eliminate the three-year monitorship follows extensive talks with Binance. The monitorship was part of a settlement after Binance acknowledged its failure to prevent money laundering. While the DOJ has not confirmed the change, the discussions reflect a shift in how corporate oversight is applied.
Binance’s settlement with the DOJ is the most significant enforcement action against a crypto exchange. Prosecutors imposed the oversight as a safeguard against future violations. Critics, however, argue that the cost and disruption associated with such monitoring often outweigh the benefits.
Outside monitors have traditionally been used in DOJ settlements involving financial misconduct, bribery, and sanctions violations. These monitors are meant to ensure companies comply with legal standards and prevent repeat offenses. However, there are growing concerns over their effectiveness and costs, particularly in cases like Binance’s.
In a memo earlier this year, Matthew Galeotti, head of the DOJ’s Criminal Division, acknowledged these challenges. He pointed out the burden of mandatory oversight on companies, while also noting its benefits in ensuring compliance. The DOJ’s decision could signal a broader reevaluation of corporate monitoring practices in the future.
The Intersection of Politics and Binance’s Case
The Binance settlement has drawn attention due to its political connections, particularly involving founder Changpeng Zhao. Zhao served four months in prison after pleading guilty to charges related to the exchange’s operations. Additionally, Binance has worked with World Liberty Financial on a stablecoin project tied to Trump’s family.
Binance continues to face oversight from both the DOJ and the Treasury’s Financial Crimes Enforcement Network. The outcome of the ongoing discussions could reshape the regulatory landscape for crypto exchanges moving forward.
The post Binance in Talks with DOJ to End Three-Year Compliance Oversight appeared first on CoinCentral.
Filed under: News - @ September 16, 2025 6:29 pm