Binance is approaching a potential agreement with federal prosecutors to eliminate the requirement that it hire an outside compliance monitor from its $4.3 billion money laundering settlement.
Bloomberg News reported on Sept. 16 that the Justice Department (DOJ) is considering removing the oversight mechanism as part of a broader policy shift under the Trump administration, according to people familiar with the discussions.
The stance shift has eliminated several corporate monitors appointed during the previous administration. Federal prosecutors discussed the three-year monitorship requirement with Binance, though no final decision has been reached regarding the confidential talks.
The crypto exchange agreed to pay one of the largest corporate penalties in US history in 2023 to resolve allegations it failed to prevent money laundering through its platform.
Binance founder Changpeng Zhao served a four-month prison sentence as part of the settlement and sought a presidential pardon from Trump in a May podcast appearance.
DOJ reviews corporate monitor policy
Matthew Galeotti, head of the DOJ’s Criminal Division, issued guidance earlier this year questioning the effectiveness of mandatory corporate oversight.
The department’s memo stated that monitors “can also impose substantial expense and interfere with lawful business operations” while acknowledging their role in preventing repeat violations.
The Justice Department has already terminated independent oversight for three companies that accepted monitors under Biden administration settlements.
According to the company’s annual reports, Glencore Plc units accumulated $142 million in monitoring costs between 2023 and 2024 before prosecutors ended their oversight requirements.
NatWest Group Plc and Navy contractor Austal USA agreed to enhanced compliance reporting as substitutes for ending their monitor requirements, based on recent court records.
Binance would likely face similar enhanced reporting obligations before prosecutors approve monitor removal. The exchange has established connections to Trump family’s business ventures, with some reports alleging that it played a role in the development of World Liberty Financial’s stablecoin USD1.
The exchange has denied the allegations.
Under the new administration, the Securities and Exchange Commission dropped or paused multiple investigations into crypto companies, including Binance. Binance maintains two separate monitors from its DOJ settlement and Treasury Department agreement with FinCEN.
The Treasury monitor remains active while prosecutors consider the DOJ oversight requirement.
