The stance shift has eliminated several corporate monitors appointed during the previous administration. Federal prosecutors discussed the three-year monitorship requirement with Binance, though no final decision has been reached regarding the confidential talks.
Matthew Galeotti, head of the DOJ’s Criminal Division, issued guidance earlier this year questioning the effectiveness of mandatory corporate oversight.
The department’s memo stated that monitors “can also impose substantial expense and interfere with lawful business operations” while acknowledging their role in preventing repeat violations.
The Justice Department has already terminated independent oversight for three companies that accepted monitors under Biden administration settlements.
According to the company’s annual reports, Glencore Plc units accumulated $142 million in monitoring costs between 2023 and 2024 before prosecutors ended their oversight requirements.
NatWest Group Plc and Navy contractor Austal USA agreed to enhanced compliance reporting as substitutes for ending their monitor requirements, based on recent court records.
The exchange has denied the allegations.
Under the new administration, the Securities and Exchange Commission dropped or paused multiple investigations into crypto companies, including Binance. Binance maintains two separate monitors from its DOJ settlement and Treasury Department agreement with FinCEN.
The Treasury monitor remains active while prosecutors consider the DOJ oversight requirement.
