Binance Seeks Early Exit from DOJ’s Watchful Eye - Pushing for Regulatory Freedom
Binance maneuvers to cut its monitoring period short—just two years into a five-year DOJ settlement. The exchange claims it's transformed its compliance game, but regulators aren't blinking yet.
Behind the Push
CEO Richard Teng leads the charge, arguing Binance has overhauled its anti-money laundering protocols and internal controls. The DOJ? Still watching. And weighing.
Market Impact
BNB barely flinched on the news—traders seem confident, or just numb to crypto's regulatory drama. Another day, another headline. Another reminder that in crypto, compliance is the new moonshot.
If Binance gets its way, it could set a precedent—exchanges behaving badly then buying their way back to freedom. Classic finance move, just with more blockchain.
A rare recalibration in oversight
According to the Bloomberg report, which cited individuals familiar with the confidential negotiations, the DOJ’s willingness to consider an early termination stems from a broader policy reassessment under the current administration.
The shift was telegraphed in an April memo where the Justice Department stated it “is not a digital assets regulator” and WOULD prioritize cases involving clearer federal crimes like terrorism and hacks, rather than using its authority to superimpose regulatory frameworks.
This new directive appears to be a primary driver behind the reassessment of Binance’s monitorship, suggesting prosecutors may now view such oversight as exceeding their intended mandate.
Forensic Risk Alliance, the firm appointed in May 2024, was tasked with auditing Binance’s controls under the plea deal. Frances McLeod, a founding partner at FRA, was installed to oversee whether Binance adhered to anti-money-laundering and sanctions laws, and to test the effectiveness of its remedial programs. Independent monitors of this kind are rarely lifted ahead of time, underscoring the significance of these discussions.
Binance doubles down on compliance
Since the settlement, Binance has moved aggressively to shore up its compliance record. The Wall Street Journal reported the exchange spent an estimated $200 million on compliance in 2024 alone, a figure that aligns with CEO Richard Teng’s stated strategy of making regulatory adherence a “competitive advantage.”
Teng, a former regulator himself who took helm of the exchange from Changpeng Zhao, has also instituted a new seven-person board of directors, moving the company away from its previous centralized leadership structure.
Meanwhile, it is crucial to note that the DOJ monitor is just one piece of a much larger enforcement puzzle. Binance’s global $4.3 billion settlement also included a separate, five-year monitorship with the Treasury Department’s Financial Crimes Enforcement Network which appointed a monitor from Sullivan & Cromwell.
The arrangement was part of a record $3.4 billion settlement with FinCEN and a $968 million settlement with OFAC for enabling over 1.67 million trades between U.S. users and those in sanctioned jurisdictions. There is no indication yet that these separate Treasury-mandated monitorships are under similar review.
