A reported Justice Department memo has put Binance’s law enforcement cooperation back in focus. The Information reported that DOJ staff were told to expect less support from the exchange in crypto cases starting June 8.
Summary
- DOJ reportedly expects slower Binance action when prosecutors seek account freezes or crypto seizures abroad.
- Binance denies any change, saying it will keep handling U.S. law enforcement requests as normal.
- Any shift from courtesy freezes to MLATs could slow fast-moving crypto crime asset recovery work.
The reported memo said Binance would stop offering courtesy freezes and would require Mutual Legal Assistance Treaty requests, or other formal legal steps, for some account freezes or seizures. Courtesy freezes are temporary holds that exchanges may place before full legal paperwork arrives.
Such requests matter in crypto crime cases because stolen funds can move across wallets and borders within minutes. A slower process could make it harder for investigators to secure assets before suspects move them again.
The report did not say that Binance had already refused a specific U.S. request. It described internal DOJ guidance and a possible change in how prosecutors should prepare requests involving the exchange.
Binance denies any policy change
Binance rejected the report and said it has not changed how it works with U.S. law enforcement. A spokesperson said, “There has been and will be no change to Binance’s cooperation with U.S. law enforcement.”
The company also said it is looking at ways to increase cooperation. Binance said it would continue to respond to valid U.S. law enforcement requests tied to active investigations.
Binance runs a Law Enforcement Request System for government agencies. Its public guidance says agencies can submit requests through the system, and Binance reviews cases under applicable laws and its terms.
The exchange has also pointed to recent compliance data. A recent report said Binance spends about $300 million a year on compliance and has handled more than 313,000 law enforcement requests worldwide.
Past settlement keeps Binance under review
The latest report comes after Binance’s 2023 U.S. criminal settlement. The Justice Department said the exchange pleaded guilty to anti-money laundering, unlicensed money transmission and sanctions violations, and agreed to pay more than $4.3 billion.
That deal required Binance to improve its compliance program and work under independent monitoring. The settlement still shapes how U.S. officials, lawmakers and investigators view the exchange’s controls.
Crypto.news reported that U.S. scrutiny grew as Binance defended its compliance work. That report said the Treasury Department had asked for records and interviews tied to settlement duties and possible sanctions concerns.
Another report said Binance denied Iran sanctions violation claims and cited its work with investigators. Binance said at the time that authorities had seized more than $752 million with help from the exchange over three years.
Fast asset holds remain central to crypto probes
Crypto investigators often rely on exchanges to freeze accounts quickly when stolen assets reach trading platforms. The goal is to stop suspects from swapping coins, using mixers or sending funds to other jurisdictions.
MLAT requests can provide stronger legal cover in cross-border cases, but they often move slowly because they require government-to-government coordination. That tension sits at the center of the reported DOJ warning.
For Binance, the issue is also about trust after years of U.S. legal pressure. The company says it has rebuilt its compliance systems, expanded staffing and kept supporting investigators.
For prosecutors, the question is whether informal support will remain available when timing matters. Binance denies any pullback, but the reported memo shows that U.S. crypto investigators are preparing for a more formal process in some cases.
