FTX Controversy Derails Top Law Firm’s Bid for Binance Role – Bloomberg

The Department of Justice is retreating from picking an elite New York law firm for a key assignment overseeing cryptocurrency exchange Binance Holdings Ltd. because of its work for FTX, according to people with knowledge of the matter.

Sullivan & Cromwell was close to winning approval to serve as independent monitor for Binance on behalf of both the Justice Department and the Treasury Department’s Financial Crimes Enforcement Network, Bloomberg reported in February. The monitorships were a condition of the $4.3 billion deal by which Binance pleaded guilty to violating US money-laundering regulations and trade sanctions.

But Justice Department officials have since expressed concern about the criticism the firm has faced over its work for FTX, a onetime major rival of Binance. The department is now reviewing other options for the lucrative monitorship, said the people, who asked not be identified because the discussions are not public. FinCEN still intends to use Sullivan & Cromwell, the people said.

Source: FTX Controversy Derails Top Law Firm’s Bid for Binance Role – Bloomberg