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Binance, the world’s largest cryptocurrency exchange by trading volume, is close to brokering a pivotal agreement with the U.S. Department of Justice that could see the removal of a court-appointed compliance monitor—a major development for the embattled firm and its investors.
The monitor was imposed in 2024 following high-profile charges of anti-money laundering (AML) and sanctions violations, which resulted in a plea deal and sweeping changes across the company’s management and operations. While no final decision has been made, sources indicate the DOJ is weighing whether recent improvements in Binance’s internal controls meet the stringent requirements set by U.S. authorities.
The monitorship, which was set to last three years, had forced Binance to open its books to independent scrutiny. Forensic Risk Alliance (FRA), a global consulting firm specializing in forensic accounting, was selected by the DOJ to oversee Binance’s compliance practices, beating out the powerhouse law firm Sullivan & Cromwell for the role.
Under the terms of the original plea agreement reached in 2023, Binance committed to overhauling its KYC and AML frameworks, paying more than $4 billion in fines, and seeing its founder, Changpeng Zhao, step down as CEO—later serving time for compliance failures.
According to the Bloomberg report, negotiations to end the monitorship are contingent on Binance ramping up transparency and demonstrating lasting improvements in its compliance reporting.
“The DOJ’s primary concern remains the sustainable implementation of robust compliance practices,” said an anonymous DOJ official familiar with the negotiations, in comments reported by Bloomberg.
This sentiment was echoed by a statement from FRA: “Our mandate is to ensure that corrective actions are substantive, not just procedural,” said Mark Thurston, Senior Partner at Forensic Risk Alliance.
The prospect of the DOJ allowing Binance to operate without external oversight is being watched closely across the digital asset industry. Many stakeholders believe that lifting the compliance monitor could signal a new phase for crypto exchanges seeking to repair relationships with regulators in major jurisdictions.
“One major exchange emerging from DOJ supervision could pave the way for broader reforms in industry self-regulation,” said Dr. Linda Lee, a legal expert in financial technology at Stanford University.
Yet, according to market analysts, the move would not immediately erase the reputational and operational risks facing Binance as global watchdogs continue to scrutinize the sector.
“Subsidizing crypto mining risks distorting energy markets,” warned an IMF spokesperson earlier this year in a separate report, underscoring ongoing institutional wariness toward crypto’s regulatory uncertainties.
Amid the compliance overhaul, Binance’s former CEO Changpeng Zhao has confirmed efforts to secure a pardon following his conviction on charges tied to the exchange’s misconduct. Zhao’s public campaign has drawn mixed reactions in the crypto community and among investors, some of whom view it as essential for Binance’s reputation management, while others worry it could undermine longer-term reforms.
“Restoring executive leadership and public trust is as vital as resolving regulatory overhang,” said Lee, reflecting the complex interplay between policy, practice, and market sentiment that will shape Binance’s future.
As of September 16, 2025, Binance’s fate remains in the balance, with the DOJ still deliberating on whether the exchange’s compliance revamp is sufficient for ending its oversight. Stakeholders, including crypto investors and industry watchdogs, are watching for a verdict that could set a precedent for future regulatory action in the fast-evolving world of digital finance.
