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Binance Cooperation Slips, DOJ Warns Staff in Internal Memo
An internal Justice Department memo warns that Binance is cooperating less on crypto cases, signaling a shift from the post-settlement posture that could strain the company's compliance status.
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The Justice Department warned staff in an internal memo that Binance will cooperate less on crypto cases, according to a report from The Information. The memo marks a shift from the cooperation posture the exchange adopted after its $4.3 billion settlement in November 2023.
That settlement required Binance to submit to independent monitors and cooperate with ongoing investigations. A decline in cooperation could put that agreement at risk, exposing the company to additional penalties or a breach of the deferred prosecution agreement.
For the crypto market, the memo introduces a new layer of regulatory uncertainty. Binance is the largest exchange by volume. Any friction with the DOJ could affect its ability to operate in the US, even indirectly through its global entities. The practical read: traders should watch for any formal DOJ action, such as a motion to modify the settlement terms. The immediate signal is behavioral. The DOJ's warning suggests that Binance's internal compliance posture is not meeting expectations.