Binance is moving toward a potential deal with the US Justice Department (DOJ) that would allow the world’s largest crypto exchange to drop a key oversight requirement from its $4.3 billion settlement for money laundering violations.
According to a report from Bloomberg, federal prosecutors are discussing ending the requirement for Binance to maintain an outside compliance monitor, which has a three-year duration under the original 2023 agreement.
DOJ Reviews Monitor Program as Corporate Costs Mount
The reported ongoing negotiation is the latest softening in DOJ’s approach to independent oversight under the Trump administration, which, according to the report already ended monitors for three companies appointed during the Biden era.
Binance would likely adopt enhanced compliance reporting requirements before the DOJ signs off on eliminating the monitor requirement.
The Justice Department has been conducting an internal review of corporate monitor usage after companies complained that the oversight is onerous and expensive.
Matthew Galeotti, head of the DOJ’s Criminal Division, noted in the report that while monitors reduce repeat offenses, they “can also impose substantial expense and interfere with lawful business operations.“
Binance was initially saddled with two corporate monitors after pleading guilty and reaching separate settlements with both the DOJ and the Treasury’s Financial Crimes Enforcement Network.
The FinCEN monitor remains in place while discussions focus on the DOJ oversight requirement.
Trump Administration Scales Back Corporate Monitor Program Amid Industry Pressure
According to Bloomberg, the DOJ has already terminated independent oversight for three companies that agreed to monitors under Biden administration settlements, including two Glencore units that accumulated $142 million in combined costs during 2023 and 2024.
NatWest Group and navy shipbuilder Austal USA agreed to enhanced compliance reporting as alternatives to continued monitoring.
The review happened as concerns raised by corporations about the financial burden and operational interference caused by independent monitors.
Meanwhile, some monitors remain in place despite the review. Toronto-Dominion Bank’s U.S. subsidiary retained its monitor after becoming the first U.S. bank to plead guilty to money laundering conspiracy charges.
Balfour Beatty Communities extended its monitorship until June 2026 after pleading guilty to defrauding the U.S. military.
Particularly, the report highlighted the Boeing case controversies surrounding the monitor selection criteria.
The Justice Department backtracked on imposing an independent monitor that included diversity and inclusion requirements, instead allowing Boeing to retain a compliance consultant rather than a certified monitor.
Binance’s settlement negotiations occur amid broader crypto industry influence within the Trump administration.
The sector donated heavily to Trump’s campaign. It supported crypto-friendly legislators, while the new administration appointed crypto-supportive agency heads and issued executive orders expanding banking access for digital asset companies.
From $4.3 Billion Fine to Potential Freedom Through Political Transformation
The monitoring requirement stems from Binance’s November 2023 guilty plea to criminal charges, including Bank Secrecy Act violations, failing to register as a money transmitting business, and violating sanctions laws.
The settlement required founder Changpeng “CZ” Zhao to step down as CEO and serve four months in prison while paying a personal $50 million fine.
The DOJ investigation revealed Binance failed to prevent transactions involving Hamas’ Al-Qassam Brigades, Al Qaeda, ISIS, money launderers, and ransomware attackers.
The regulators insist that virtual currency exchanges must “play by the rules” to access the U.S. financial system. Ever since then, Binance has launched Binance.US to be compliant with the US regulations.
Zhao’s legal troubles continued through multiple class action lawsuits alleging money laundering facilitation, with cases eventually transferred to the Florida federal court under the first-to-file rule.
Despite the legal challenges, Zhao confirmed in May 2025 that he formally applied for a presidential pardon, citing Trump’s previous pardons of BitMEX executives.
@cz_binance, the founder and former CEO of @Binance, has confirmed that he has formally applied for a presidential pardon.#Binance #CZhttps://t.co/9owHRhfIhU
— Cryptonews.com (@cryptonews) May 8, 2025
Binance’s compliance efforts included assisting international law enforcement, notably helping India’s Enforcement Directorate dismantle a $47.6 million gaming scam through its Financial Intelligence Unit.
Looking forward, if a deal is struck, the potential end of DOJ monitoring would be a significant milestone in Binance’s rehabilitation following one of the largest corporate penalties in U.S. history.
However, the Treasury Department’s FinCEN monitor remains active, and final DOJ approval depends on satisfactory enhanced reporting arrangements that maintain regulatory oversight while reducing operational burden.
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