Binance Nears DOJ Deal to Drop Outside Monitor from $4.3 Billion Settlement
Breaking: Crypto giant Binance closes in on landmark agreement with US Department of Justice—potentially sidestepping external oversight in historic $4.3 billion resolution.
Regulatory Chess Move
The world's largest exchange maneuvers to eliminate third-party monitoring requirements imposed under last year's massive settlement. DOJ prosecutors now considering revised compliance framework that keeps oversight entirely in-house.
Compliance Revolution or Regulatory Retreat?
Binance's legal team argues their internal controls have matured enough to satisfy settlement terms without external babysitters—a claim that either demonstrates remarkable operational improvement or spectacular regulatory hubris. Because nothing says 'reformed' like avoiding independent verification.
Market Impact
Traders watch closely as resolution could remove lingering uncertainty hanging over exchange operations. The $4.3 billion penalty remains one of largest corporate settlements in history—though apparently not large enough to guarantee actual oversight.
Final negotiations underway as Binance attempts what every finance giant dreams of: paying record fines while avoiding actual consequences.
DOJ reviews corporate monitor policy
Matthew Galeotti, head of the DOJ’s Criminal Division, issued guidance earlier this year questioning the effectiveness of mandatory corporate oversight.
The department’s memo stated that monitors “can also impose substantial expense and interfere with lawful business operations” while acknowledging their role in preventing repeat violations.
The Justice Department has already terminated independent oversight for three companies that accepted monitors under Biden administration settlements.
According to the company’s annual reports, Glencore Plc units accumulated $142 million in monitoring costs between 2023 and 2024 before prosecutors ended their oversight requirements.
NatWest Group Plc and Navy contractor Austal USA agreed to enhanced compliance reporting as substitutes for ending their monitor requirements, based on recent court records.
Binance WOULD likely face similar enhanced reporting obligations before prosecutors approve monitor removal. The exchange has established connections to Trump family’s business ventures, with some reports alleging that it played a role in the development of World Liberty Financial’s stablecoin USD1.
The exchange has denied the allegations.
Under the new administration, the Securities and Exchange Commission dropped or paused multiple investigations into crypto companies, including Binance. Binance maintains two separate monitors from its DOJ settlement and Treasury Department agreement with FinCEN.
The Treasury monitor remains active while prosecutors consider the DOJ oversight requirement.
