Binance Pushes to Remove DOJ Oversight From $4.3B Settlement

• Binance is negotiating with the DOJ to remove its independent monitor.
• The monitor was part of a $4.3B settlement over money laundering failures.
• If removed, Binance must maintain strict internal reporting standards.

Binance is in talks with the U.S. Department of Justice to remove the independent compliance monitor imposed under its $4.3 billion settlement in 2023. The settlement followed an earlier judgment that the exchange failed to implement adequate controls to stop money laundering. 

Why the Monitor Was Imposed

The DOJ required external oversight after concluding that Binance had failed to enforce U.S. anti-money laundering rules. 

Related: Binance Issues Urgent Reminder for Scam Alert Over Fake Listing Agents

Notably, the monitor was tasked with reviewing how Binance handled customer identification, tracked suspicious transactions, and managed oversight across its global business. 

Regulators argued that Binance’s internal reporting could not be trusted without independent verification. This came after the exchange admitted wrongdoing and agreed to pay one of the largest corporate penalties in U.S. history. 

As part of the penalty, Binance co-founder Changpeng Zhao served a four-month prison sentence.. 

Why Binance Wants It Removed

Notably, the DOJ’s stance on corporate monitors has shifted under the current administration. Officials have questioned whether monitors provide long-term benefits or simply add significant costs. 

Matthew Galeotti, Head of the DOJ’s Criminal Division, said that while monitors can prevent repeat violations, they also risk interfering with lawful business operations.

Recent cases highlight this change. Glencore Plc reported spending more than $140 million on compliance monitoring before prosecutors ended the requirement early. 

NatWest Group and defense contractor Austal USA were also allowed to replace monitors with strict internal reporting obligations.

Similarly, Binance points to its own progress since the 2023 settlement. The company has expanded its compliance department, improved internal systems, and moved closer to regulatory standards. These steps have opened the door to discussions about ending its three-year monitorship before its scheduled conclusion.

Is it Too Soon?

If the DOJ agrees to remove the monitor, Binance would still operate under strict reporting obligations. Enhanced compliance audits and regular updates to prosecutors would replace the outside oversight. 

A separate monitor tied to Binance’s settlement with the Treasury Department’s Financial Crimes Enforcement Network would also remain in place. This ensures that at least one independent reviewer continues to oversee the company’s operations. 

Ultimately, if Binance secures the removal of the monitor, the outcome will influence similar cases in the crypto industry. Notably, the talks remain confidential, and no agreement has yet been finalized.

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