Binance Holdings Ltd. may be closer to shedding one of the toughest conditions from its record-breaking U.S. settlement. According to a Bloomberg report on September 16, the exchange is in advanced talks with the Department of Justice (DOJ) to terminate its court-appointed compliance monitor well before the original end date.
A Settlement Condition Under Review
The monitor, Forensic Risk Alliance (FRA), was installed in May 2024 for a three-year term as part of Binance’s $4.3 billion plea deal over anti-money laundering and sanctions violations. FRA’s job was to audit the exchange’s internal controls and ensure that remedial compliance measures were actually working.
Such monitorships are rarely cut short, making these negotiations especially significant. If approved, it would mark a shift in DOJ enforcement strategy and a possible easing of the regulatory pressure that has loomed over Binance since its settlement.
DOJ’s Changing Priorities
The move appears tied to a broader policy recalibration. In April, the DOJ made clear it “is not a digital assets regulator” and would focus on prosecuting cases with direct federal crimes such as terrorism, hacks, and fraud rather than using its oversight to indirectly regulate crypto markets.
This change in approach suggests prosecutors may now see the Binance monitor as going beyond their intended role, opening the door for early termination.
Binance’s Compliance Overhaul
Since the settlement, Binance has been working to demonstrate that it takes compliance seriously. The Wall Street Journal reported the exchange spent about $200 million on compliance in 2024 alone.
CEO Richard Teng, a former regulator who took over from Changpeng Zhao, has reshaped the company’s governance installing a seven-member board of directors and emphasizing regulatory adherence as a “competitive advantage.”
Not the Only Watchdog
Even if the DOJ does remove its monitor, Binance is still under tight supervision elsewhere. The $4.3 billion settlement also included a five-year monitorship with the Treasury Department’s FinCEN and oversight tied to a $968 million settlement with the Office of Foreign Assets Control (OFAC).
For those, law firm Sullivan & Cromwell was appointed to monitor Binance’s compliance. There is currently no indication that these Treasury-mandated monitorships are being reconsidered.
Final Take
If the DOJ agrees to lift its monitor early, it would represent a rare concession and a symbolic win for Binance, signaling that regulators may be stepping back from intensive, court-ordered oversight of crypto exchanges. But with Treasury still watching closely, Binance’s path to proving long-term compliance is far from over.
