US prosecutors weigh dropping independent oversight of Binance as part of $4.3 billion settlement review
Olivia Lunar/Shutterstock and Adobe modified by Blockworks
Binance Holdings Ltd. is reportedly in discussions with the US Department of Justice over whether it can shed a key oversight condition from its record $4.3 billion settlement.
Bloomberg reported Tuesday that prosecutors are considering whether to relax the three-year monitorship, which was imposed after Binance admitted in 2023 that it failed to prevent money laundering. The Justice Department has yet to reach a decision, but revisiting the deal could reflect a broader recalibration of how corporate monitorships are applied.
For decades, outside monitors have been a standard tool in DOJ settlements involving bribery, sanctions violations and financial fraud. While they are meant to prevent repeat misconduct, critics argue that the cost and disruption often outweigh the benefits.
In a memo earlier this year, Matthew Galeotti, who heads the department’s Criminal Division, acknowledged the tension, noting both the advantages and burdens of mandatory oversight.
The Binance case is exceptional for both the scale of the penalty and its intersection with US politics. Founder Changpeng Zhao served four months in prison after entering a guilty plea.
The exchange has also worked on a stablecoin project with World Liberty Financial, a venture tied to Trump’s family. Since returning to office, Trump has advanced crypto-friendly policies, and the Securities and Exchange Commission has paused or abandoned several investigations, including some that involved Binance.
Binance remains under dual oversight, with a second monitor still required by the Treasury’s Financial Crimes Enforcement Network. Whether the DOJ will follow its recent pattern and terminate the monitorship is uncertain, but any change would mark a major development in the largest enforcement action ever against a crypto exchange.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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