Binance UAE Routing Policy Slows Brooklyn DA Fraud Probes

Binance says it still responds directly to urgent cases involving child exploitation and terrorism. The exchange also maintains that its overall cooperation with law enforcement has improved year-over-year.

The Brooklyn DA's office is not alone in raising alarms. A memo from the US Department of Justice flagged concerns about reduced cooperation from Binance on urgent asset freezes and seizures. European investigators have encountered similar friction, with the new routing requirements complicating efforts to freeze assets and track scammers before funds disappear.

The Brooklyn DA's Virtual Currency Unit was established in 2023 under District Attorney Eric Gonzalez specifically to tackle digital asset fraud. The unit has already been involved in several high-profile investigations, including asset seizures and domain takedowns targeting crypto scammers.

As major crypto exchanges seek regulatory legitimacy in jurisdictions like the UAE, they are increasingly subject to local data-sharing rules that may conflict with the needs of foreign law enforcement. The tension is likely to intensify as US and European prosecutors push back against routing policies that slow down fraud cases.