Media Coverage
Source: Blockworks
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Thomas
06.05.24
In connection with a $4.3 billion settlement with the U.S. over deficient anti-money laundering protocols, Binance Holdings Ltd., a global company operating as the largest cryptocurrency exchange, will be required to share information and data with two monitors to ensure it remains compliant, according to recent coverage by Blockworks.
In an interview with Blockworks, Corporate Investigations & White Collar Defense partner Richard Donoghue explained that Binance’s case is unusual as he has only seen two instances where two separate monitors have been appointed.
The monitors will “basically be living under [Binance’s] roof for years to come,” he said.
Donoghue added that “[he] would imagine this is going to be a 10-figure investment for [Binance]. The cost of this monitorship over the next five years will be staggering.”
Due to Binance’s global operations, some countries have already raised concerns about the monitors passing over consumer data to the U.S. government.
“This is not a publicly traded company, so you don’t have all those safeguards that you might otherwise have and have a real compliance system in place. So, this is going to be a very heavy lift for the company and for the monitors. It’s worldwide, obviously. You’re going to have cross-border issues,” he concluded.
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