x
Binance has pushed back against a reported US Justice Department warning, telling BeInCrypto that any claims of reduced cooperation with US law enforcement are wrong.
A Binance official said the reported DOJ memo appears to be based on a misreading of the exchange's obligations under Abu Dhabi Global Market rules. The exchange has already told both the DOJ and ADGM that its process for handling US law enforcement requests will remain unchanged.
On Wednesday, BeInCrypto reported that an internal DOJ memo had warned prosecutors to expect less help from Binance in crypto investigations. The memo, first described by The Information, reportedly said Binance would end courtesy freezes.
Investigators would instead need Mutual Legal Assistance Treaties (MLATs) to freeze or seize accounts.
Binance says it has not seen the memo but does not dispute its existence. However, it firmly rejects the reported claims.
It seems the exchange believes there may be a misunderstanding regarding Binance's obligations under its Abu Dhabi license.
ADGM guidelines require requests to be routed through its regulatory body for standardization, which slows law enforcement agencies elsewhere.
Follow us on X to get the latest news as it happens
BeInCrypto examined the rules at the center of the dispute. Binance.com became the first global crypto exchange licensed under the ADGM framework, with supervision starting on January 5, 2026. The changes the memo anticipated reportedly began on June 8, five months into that license.
Crucially, ADGM's data protection regulations prohibit the transfer of personal data out of the free zone. Official guidance allows disclosures to UAE law enforcement, but states this "would not extend to cover requests from law enforcement agencies outside of the UAE."
Read strictly, that could push foreign agencies onto treaty channels like MLATs, mirroring what the memo reportedly anticipated.
However, the same guidance permits transfers tied to legal claims and cites a US authority's request as a legitimate example.
The rulebook, therefore, leaves Binance with lawful grounds to continue cooperating with US authorities.
There is a second layer to the story. Binance pleaded guilty in November 2023 to anti-money laundering and sanctions failures, paying $4.3 billion.
Cooperation was already a sore point then. The DOJ granted Binance only partial credit for its cooperation because the exchange delayed producing evidence.
The deal also required an independent compliance monitor for three years. That oversight has since thinned. The DOJ paused corporate monitorships in 2025, and founder Changpeng Zhao (CZ), who personally pleaded guilty, received a presidential pardon.
In April, Senator Richard Blumenthal pressed the DOJ and Treasury on the status of the monitors. His letters followed reports that over $1 billion moved through Binance to Iran-linked wallets.
With fewer formal levers, prosecutors depend more on voluntary collaboration from exchanges, like courtesy freezes. That dependence explains why an internal warning about Binance pulling back carries real weight.
Binance confirmed it is in direct contact with the DOJ and says it flagged the memo immediately.
"We've told the DOJ, we're not changing anything... like nothing is changing. Rather we are increasing our engagement with law enforcement and with the DOJ in America in order to stop illicit activity on the blockchain," Binance official clarified in the interview.
The episode caps a tense year in Washington. The Treasury reportedly issued stricter compliance demands after reports tied Iranian funds to the platform, and Binance filed a defamation lawsuit against The Wall Street Journal in March.
The DOJ has not commented publicly. Whether it revises the guidance may be the clearest signal of where the relationship stands.
