Binance Denies DOJ Memo Claim on Crypto Crime Cooperation

TLDR

• DOJ reportedly warned prosecutors about slower Binance cooperation.
• Binance denied changing its US law enforcement cooperation policy.
• The reported memo cited possible limits on courtesy freezes.
• MLAT requests could slow some crypto asset freeze cases.
• Binance remains under review after its $4.3B US settlement.

A reported Justice Department memo has put Binance’s role in crypto crime investigations back under review, after prosecutors were allegedly told to expect slower cooperation from the exchange on some account freezes and asset seizures.

The Information reported that the DOJ circulated internal guidance in June telling attorneys handling digital asset cases that Binance may stop offering “courtesy freezes” from June 8. Binance denied the report and said its cooperation with U.S. law enforcement has not changed.

DOJ Memo Raises Questions Over Asset Freezes

Courtesy freezes are temporary account holds that exchanges may apply before full legal paperwork is completed. They can be important in crypto crime cases because stolen funds often move quickly across wallets, chains, and jurisdictions.

The reported DOJ memo said Binance may require Mutual Legal Assistance Treaty requests or other formal legal processes for some freezes and seizures. MLAT requests can take longer because they involve coordination between governments.

The report did not say Binance refused a specific U.S. law enforcement request. It described internal DOJ guidance and a possible change prosecutors may need to consider when preparing cross-border crypto cases.

A slower process could affect investigations involving hacks, scams, ransomware, sanctions evasion, or stolen funds. Investigators often seek quick exchange action before assets leave traceable accounts.

Binance Denies Reducing Cooperation

Binance rejected claims that it has reduced or will reduce cooperation with U.S. law enforcement. A Binance spokesperson said,

The spokesperson added, “The opposite of this sentiment is true — we are examining ways to further increase our cooperation.” Binance said it will continue responding to U.S. law enforcement requests tied to investigations.

The exchange said any claim that it is cutting cooperation is wrong. Reports also said Binance believes the memo may have misread obligations linked to its Abu Dhabi Global Market license and that ADGM routing guidance will not apply in the U.S.

Binance operates a Law Enforcement Request System for agencies. The exchange has said it reviews government requests under applicable laws and has handled hundreds of thousands of law enforcement requests worldwide.

Settlement and Monitorship Stay in Focus

The report comes after Binance’s 2023 U.S. criminal settlement, when the exchange agreed to pay more than $4.3 billion over anti-money laundering, unlicensed money transmission, and sanctions violations.

That settlement required Binance to strengthen compliance and operate under independent monitoring. The Information also reported that Binance is negotiating to formally end the DOJ monitorship, while a Treasury-appointed monitorship remains active.

Binance continues to present compliance as a core business priority. CEO Richard Teng said on X that trust must be earned daily in crypto and noted that Binance’s Brazil licensed operations secured ISO/IEC 27001 and ISO/IEC 27701 certifications for information security and privacy management.

The reported memo adds fresh attention to how centralized exchanges support investigations while operating across many legal systems. The central dispute remains whether Binance’s process for freezes and seizures is changing, a claim the exchange has directly denied.