A Deferred Prosecution Agreement, or DPA, is a voluntary agreement between a prosecutor and a corporation, or sometimes an individual, where the prosecutor agrees to defer or drop charges if the defendant meets certain conditions. These conditions typically include paying fines, implementing compliance reforms, and cooperating with ongoing investigations. DPAs are often used in cases of corporate misconduct to avoid lengthy trials and severe collateral consequences. This legal instrument provides an alternative to criminal conviction.
Context
In the digital asset sector, Deferred Prosecution Agreements have become relevant in cases involving cryptocurrency exchanges or other entities accused of regulatory violations, such as anti-money laundering failures. News reports often detail the terms of these agreements, including substantial financial penalties and requirements for enhanced internal controls. The use of DPAs highlights regulators’ intent to impose accountability while avoiding disruptions to large financial entities. Future applications of DPAs will likely shape the enforcement landscape for crypto businesses.
The $48 million Deferred Prosecution Agreement establishes a precedent for resolving high-profile tax evasion cases via settlement, recalibrating federal enforcement posture.
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