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DOJ Warns of Weaker Binance Cooperation on Crypto Freeze Requests
A DOJ memo warns prosecutors that Binance may require MLAT requests for asset freezes, slowing illicit fund recovery. Binance denies any change, citing ADGM rules.
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The U.S. Department of Justice told its cryptocurrency prosecutors in early June that Binance is preparing to add new conditions to asset-freeze and seizure requests, potentially slowing the recovery of stolen or sanctioned funds. The warning came in an internal memo from Rachel Jones, the DOJ's digital currency counsel, and was reviewed by The Information.
Binance denies any change in posture. A spokesperson said cooperation with U.S. law enforcement "has been and will be no change." The company's head of corporate communications told BeInCrypto that the DOJ likely misread Binance's obligations under its license from the Abu Dhabi Global Market.
ADGM data protection rules took effect in January. Official guidance says the exemption for necessary disclosures "would not extend to cover requests from law enforcement agencies outside of the UAE." A narrow reading means international authorities would need to go through the Mutual Legal Assistance Treaty process instead of relying on Binance's voluntary cooperation for immediate freezes.
Binance points to a separate exception in the same guidance – transfers needed for "the establishment, exercise or defence of legal claims" – and says that lets it keep helping U.S. agencies. The firm is "not going to change in any way, shape or form, the way that we interact with law enforcement in America," the communications head said.