Two Binance employees detained in the UAE have been cleared and released after answering questions about third-party fund flows. The exchange says the inquiry was routine.
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Binance said on Aug. 20 that two employees detained in the United Arab Emirates had been cleared and released after answering questions about third-party fund flows.
The New York Times first reported the detentions, citing four people familiar with the matter. Authorities stopped the employees at airports in the Emirates during recent weeks, the report said.
Binance later told Reuters that a small number of employees had provided statements during what the company called a “routine inquiry.” The inquiry involved third-party fund flows passing through a Binance client money account, according to the exchange. The exchange said the employees were not subjects of the investigation.
No formal charges against the employees were disclosed. Binance’s statement that they were “cleared” reflects the company’s account of events and has not been independently confirmed through a police announcement or court record.
The exchange said it was cooperating with Dubai Police and authorities in other Emirates. The company added that it was working to create clearer procedures for responding to similar inquiries.
Clients money accounts generally separate customer funds from a company’s operating capital. Such accounts can involve banks, payment providers, corporate customers and other intermediaries. The presence of third-party transfers does not by itself establish unlawful activity.
The inquiry has not resulted in a publicly announced change to Binance’s regulatory status in Dubai. The Virtual Assets Regulatory Authority lists Binance FZE as an active licensed provider in its public registry. The license covers exchange, broker-dealer, lending, borrowing, management and investment services. It also permits the company to serve retail, qualified and institutional investors. Derivatives and margin trading carry additional customer restrictions.
Binance received its current VASP license in April 2024, as crypto.news previously reported. The approval supported the exchange’s transition into Dubai’s regulated local market. The UAE has since become a central part of Binance’s regulatory strategy. The exchange also expanded its regulated presence across Abu Dhabi through separately supervised entities.
Binance said cryptocurrency transactions and institutional client money arrangements remain unfamiliar to some authorities. It described its discussions with UAE officials as an effort to establish “clear, appropriate coordination procedures.”
The exchange did not identify the client account, third parties or transaction values involved. It also did not disclose how long the employees were held or whether authorities imposed travel restrictions.
The situation differs from Binance’s dispute in Nigeria, where authorities detained executives in 2024 and filed criminal charges. One executive, Tigran Gambaryan, was later released after Nigerian prosecutors dropped the case against him personally.
No deadline, court hearing or enforcement proceeding has been announced. Further clarity would require a statement from UAE authorities or the release of formal legal documents.
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