Binance is reportedly in talks with federal prosecutors to eliminate the requirement that it hire an outside compliance monitor as part of its $4.3 billion money laundering settlement, marking a potential shift in corporate oversight policy under the Trump administration.
DOJ reconsidering corporate oversight requirements
According to Bloomberg News, the Justice Department (DOJ) is evaluating whether to remove the monitorship requirement, reflecting a broader policy change that has already ended oversight for several companies appointed under the previous administration.
While discussions with Binance are ongoing, no final decision has been made regarding the removal of the three-year monitor. The crypto exchange originally agreed to the settlement in 2023, paying one of the largest corporate penalties in US history after allegations it failed to prevent money laundering on its platform.
Binance founder Changpeng Zhao served a four-month prison sentence as part of the settlement and publicly sought a presidential pardon from Trump in a May podcast.
Policy shift under new DOJ guidance
Earlier this year, Matthew Galeotti, head of the DOJ’s Criminal Division, issued guidance questioning the effectiveness of mandatory corporate oversight. The memo noted that monitors can also impose substantial expense and interfere with lawful business operations, while recognizing their role in preventing repeat violations.
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Under the Biden administration, independent oversight was terminated for companies like Glencore Plc, which accumulated $142 million in monitoring costs between 2023 and 2024, and firms like NatWest Group Plc and Austal USA, which substituted enhanced compliance reporting in place of monitors.
If approved, Binance would likely face similar enhanced reporting obligations before prosecutors remove the DOJ monitor. Currently, Binance continues to maintain two separate monitors: one for the DOJ settlement and another under the Treasury Department’s FinCEN agreement. The Treasury monitor remains active while discussions continue.