The latest update: The EDT for April 16, 2024 is 02:16. | Read for 1 minute
In a plea deal to resolve charges of anti-money-laundering and violations of sanctions, DOJ and Treasury Department’s Financial Crimes Enforcement Network(FinCEN), mandated Binance’s court-ordered supervision. The monitorship would last for three to five year.
Sullivan & Cromwell was originally the firm that handled FTX’s bankruptcy. Binance is the independent monitor. Binance was required to make this appointment as part of the $4.3b deal, where Binance admitted its guilt for violating US trade and money laundering sanctions.
Sharon Cohen Levin was also slated as the leader of the team. She is a former federal prosecutor and a member at the law firm.
DOJ Review Binance Monitor Due to Conflicts
However, Bloomberg reported DOJ officials raised concern on Tuesday about criticisms made against the firm because of its previous work with FTX. FTX was a competitor to Binance at one time.
The department has begun evaluating other candidates to fill the role of monitor. FinCEN is still determined to appoint Sullivan & Cromwell, according to sources.
Cryptonews didn’t receive a response to its request for comments from Sullivan & Cromwell or the DOJ by time of publication.
A Fraud Investigation is Launched Against a Law Firm
Sullivan & Cromwell acted as counsel for the crypto exchange before its demise and during its Chapter 11 proceeding. The firm then submitted invoices for services exceeding $170m.
They included the location of billions in assets to assist in creditor recovery.
In February, FTX Investors A class action lawsuit was filed The law firm was accused of complicity with the fraud.
The suit claims that Sullivan & Cromwell had a unique vantage when it acted as FTX’s advisor in 2021 and 2022. The firm could have gained a deep understanding of the FTX entity’s convoluted organization structure.
Robert J. Cleary was authorized by a US bankruptcy court last month. He is a US prosecutor who has been known as a key player in the Unabomber trial. Investigating potential conflicts of interests Sullivan & Cromwell held a seminar regarding its relationship with FTX.