Binance is nearing a new agreement to avoid the requirement of an “independent compliance auditor,” one of the most critical conditions of its $4.3 billion settlement with the US Department of Justice (DOJ).
According to Bloomberg, Binance, the world’s largest cryptocurrency exchange, is in talks with the US Department of Justice to lift the obligation included in the agreement it signed in 2023 to eliminate accusations of failing to prevent money laundering.
According to sources familiar with the matter, federal prosecutors are considering ending Binance’s requirement to retain an outside auditor. This development could be one of the latest examples of loosening independent auditing requirements, frequently implemented during the Biden administration. The US Justice Department has previously terminated auditing practices at several major companies.
Chart showing the rise in BNB price.
Binance is taking steps to regain the trust of US authorities following the record-breaking fine. Company founder Changpeng Zhao announced in a podcast in May that he would seek clemency from President Donald Trump after completing a four-month prison sentence as part of the deal. Binance also played a role in the stablecoin project launched by World Liberty Financial, a Trump family venture.
The US Department of Justice has reportedly not yet made a final decision. If granted an exemption from the audit, Binance is expected to assume stricter reporting and compliance obligations. The US Department of Justice has not commented, and Binance has not responded to questions on the matter.
Binance currently works with two separate auditors appointed by both the DOJ and the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
*This is not investment advice.
