What it is
A DPA is a contract between a prosecutor and a defendant, typically a corporation, where the prosecutor agrees to defer or postpone prosecution for a specified period. In return, the defendant admits to wrongdoing, pays fines, implements compliance reforms, and often cooperates with ongoing investigations. If the defendant fulfills all conditions, the charges are dismissed at the end of the term; otherwise, prosecution can resume.
In the crypto industry, DPAs have been used by the Department of Justice (DOJ) as a tool to address illicit activities by major firms. For example, Binance entered into a DPA with the DOJ, agreeing to pay a multi-billion dollar fine and implement extensive compliance and monitoring programs to resolve charges related to money laundering and sanctions violations. These agreements often involve a court-appointed monitor to oversee compliance, significantly impacting the firm's operations and market standing.
Why it matters
DPAs indicate severe regulatory scrutiny and can lead to massive fines and operational changes for major crypto firms, affecting market confidence and services.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice