Binance is approaching a new agreement to circumvent the requirement of an “independent compliance auditor,” one of the most important terms of a $4.3 billion settlement with the US Department of Justice (DOJ).
According to Bloomberg, the world’s largest cryptocurrency exchange, Binance is in consultation with the U.S. Department of Justice to lift the obligations contained in the agreement it signed in 2023 and eliminate accusations that it failed to prevent money laundering.
Sources familiar with the issue say federal prosecutors are considering ending Binance’s requirements to maintain external auditors. This development could be one of the latest examples of relaxing the independent audit requirements that are frequently implemented during the Biden administration. The US Department of Justice has previously ended its audit practices at several major companies.
A chart showing rising BNB prices.
Binance is taking steps to regain confidence in U.S. authorities following record fines. The company’s founder, Changpeng Zhao, announced in a podcast in May that he would seek tolerance 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 Trump family venture World Liberty Financial.
The U.S. Department of Justice has reportedly not made a final decision yet. If an audit exemption is granted, Binance is expected to assume stricter reporting and compliance obligations. The US Department of Justice has not commented, and Binance has not answered any questions on the issue.
Binance is currently working with two independent auditors appointed by both the DOJ and the US Treasury Department’s Financial Crime Enforcement Network (FINCEN).
*This is not investment advice.
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