DOJ Memo Warns of Reduced Binance Cooperation on Asset Freezes
Justice Department prosecutors were told to expect formal MLAT processes for crypto asset seizures. Binance denies any policy change and cites ADGM license rules.
The U.S. Department of Justice issued an internal memo warning federal prosecutors to expect reduced cooperation from Binance when seeking to freeze or seize cryptocurrency assets, according to reporting from The New York Times and multiple crypto industry outlets.
The memo, dated June 8, 2026, indicated the world's largest cryptocurrency exchange would end courtesy freezes and require Mutual Legal Assistance Treaties or formal legal processes for certain asset freeze and seizure requests. The guidance prompted concerns among law enforcement agencies about slowed criminal investigations.
European Investigators Report Obstacles
At a law enforcement conference in the Netherlands, European police investigators reported increased difficulties obtaining information from Binance. The shift has raised alarms about the exchange's willingness to assist in tracking scammers and recovering stolen funds in crypto-related crimes.
The MLAT process represents a formal diplomatic channel that can take months or years to complete, compared to direct cooperation that previously allowed rapid freezing of suspicious accounts. This delay potentially allows criminals to move funds beyond recovery before authorities can act.
Binance Disputes Characterization
Binance has denied that any policy change occurred regarding U.S. law enforcement cooperation. The exchange states it continues responding to legitimate requests through its Law Enforcement Request System and is increasing engagement with the Justice Department.
According to reporting from BeInCrypto and DailyCoin, Binance attributed the situation to potential misreading of data protection rules associated with its Abu Dhabi Global Market license. The company maintains that U.S. law enforcement is largely exempt from any new requirements, though some state prosecutors may need to route requests through foreign governments in specific cases.
Regulatory Transition
The dispute comes as Binance transitions from years of regulatory scrutiny toward operating as a regulated financial institution. The exchange has faced multiple legal battles globally, including a major anti-money laundering case in the United States that resulted in significant penalties and compliance obligations.
Industry observers note that the tension reflects broader growing pains as cryptocurrency exchanges mature from unregulated operations into entities subject to formal banking and data protection standards. The balance between rapid law enforcement assistance and regulatory compliance remains unsettled across the sector.
The Justice Department has not publicly commented on the memo's contents or Binance's response.