DOJ Warns Binance May End Courtesy Freezes; Exchange Denies

The Information reported that the U.S. Department of Justice warned prosecutors Binance would stop offering voluntary account freezes starting June 8. The change, if it holds, would require investigators to use Mutual Legal Assistance Treaties or other formal legal steps before freezing crypto assets on the exchange.

Binance denied the report. A spokesperson said the exchange has not altered its cooperation policies with law enforcement and continues to handle requests through its Law Enforcement Request System. The denial adds uncertainty over whether the DOJ memo reflects an actual policy shift or simply internal expectations.

Courtesy freezes let exchanges temporarily restrict accounts while formal paperwork is completed. MLAT requests involve coordination between governments and can take weeks or months. That gap matters for investigations where funds move fast across wallets or jurisdictions.

The reported memo comes during Binance's ongoing compliance oversight following its 2023 settlement with U.S. authorities. That deal introduced independent monitoring and stricter obligations. Any retreat from voluntary cooperation could increase the friction in cross-border crypto cases.

Earlier AlphaScala covered the DOJ memo and Binance's response in detail. For broader context on how exchanges interact with law enforcement, see our crypto market analysis.

For now, the concrete marker is June 8. If Binance follows through on the reported shift, investigators will lose a fast tool. If the denial holds, the memo was just guidance. Neither side has clarified further.