Binance nears deal end DOJ settlement monitor
Binance is negotiating with the U.S. Justice Department to potentially remove the compliance monitor from its 2023 plea deal. Enhanced reporting would likely replace the oversight if approved.
The Justice Department is reviewing monitors across multiple companies, responding to complaints that outside oversight is costly and can disrupt operations. In a memo earlier this year, the head of the DOJ’s Criminal Division said monitors can reduce recidivism but “can also impose substantial expense and interfere with lawful business operations.” He noted that alternatives may fit better in some cases.
Prosecutors have recently ended independent oversight at several firms that accepted monitors under prior agreements. Court filings show monitors were lifted at two Glencore units after significant costs in 2023–2024, while a NatWest unit and Austal USA shifted to enhanced compliance reporting instead of full oversight.
Binance, who pleaded guilty in 2023, was assigned two monitors: one under its DOJ deal and another under a separate pact with the Treasury’s Financial Crimes Enforcement Network. The FinCEN monitor remains. People familiar with past discussions say the company previously pressed Treasury to drop that requirement as well.
Political and regulatory context also matters. The crypto industry backed President Donald Trump’s campaign, and since taking office he’s appointed crypto‑friendly agency heads and advanced policies sought by the sector. The SEC has dropped or paused a number of crypto cases, including actions involving Binance, even as other monitorships in banking and defense have been left in place.
Reporting this summer described how the exchange helped develop and promote USD1, a stablecoin launched by the Trump family’s World Liberty Financial, with a large share of outstanding coins held in Binance wallets following a $2 billion transaction. Separately, founder Changpeng Zhao has sought a presidential pardon after serving a four‑month sentence.
The DOJ has not set a timeline for a decision on Binance’s monitor. Any change would likely be formalized through updated reporting obligations and reflected in court filings. The FinCEN monitorship is unaffected by the current talks.
Recommended