Breaking: Sullivan & Cromwell Heads To Become Binance’s Watchdog

Published 16/02/2024, 09:59
Breaking: Sullivan & Cromwell Heads To Become Binance’s Watchdog

Coin Edition -

  • Reports state that Sullivan & Cromwell will most likely be appointed Binance’s independent monitor.
  • The law firm’s partner and former federal prosecutor, Sharon Cohen Levin, is poised to lead the monitoring team.
  • The team will scrutinize Binance’s compliance with its plea agreement and cross-examine its financial records.

According to the latest reports, the American multinational law firm Sullivan & Cromwell is expected to be appointed Binance’s independent monitor after the crypto exchange’s $4.3 billion settlement with the U.S. government. Sources familiar with the matter reported that Sharon Cohen Levin, the law firm’s partner and former federal prosecutor, would likely lead the firm’s watchdog team.

Though the Department of Justice (DoJ) hasn’t signed off on Sullivan & Cromwell’s appointment, reports stated that the department is most likely to approve it. However, the department, the law firm, and the exchange remain silent on the matter, declining to comment.

The current development is part of a larger saga involving Binance and its former CEO, Changpeng Zhao. Last year, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance, alleging 13 charges, including the sale of unregistered securities. After a long battle, Binance pleaded guilty, and Zhao resigned, agreeing to a $4.3 billion settlement.

If Sullivan & Cromwell is appointed as the monitor of Binance, they would be in charge of scrutinizing and ensuring the exchange’s compliance with its plea agreement. The firm would also cross-examine the exchange’s failure in anti-money laundering.

In addition, the monitoring team would be given the authority to keep Binance’s financial records and other documents. Following reviews and assessments of these records, the firm would send periodic reports to the government.

The law company’s previous involvement with the once-prominent, now-bankrupt FTX adds more intrigue to the case. Levin was also a prominent figure who previously dealt with the anti-money laundering and asset forfeiture department at the Manhattan US Attorney’s Office.

The post Breaking: Sullivan & Cromwell Heads To Become Binance’s Watchdog appeared first on Coin Edition.

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