DOJ Warns of Tougher Binance Approach in Crypto Investigations
According to an internal DOJ memo, Binance would now require formal legal steps first for account freezes and seizures. That could slow international crypto investigations, including in Europe.
Key Takeaways
- The DOJ reportedly warned prosecutors that Binance may cooperate less in crypto investigations.
- According to an internal memo, Binance will stop so-called courtesy freezes starting June 8.
- Binance denies any change and says it will keep handling legitimate requests from law enforcement.
The U.S. Department of Justice (DOJ) reportedly told prosecutors to expect less cooperation from Binance in crypto investigations. In an internal memo reported by The Information, the agency said that could make it tougher for investigators to freeze accounts quickly or secure crypto assets.
Stricter Process for Freezes
The memo says Binance will end so-called courtesy freezes starting June 8, according to the report. These are voluntary, temporary restrictions that crypto exchanges can place on accounts at the request of law enforcement or victims while the formal legal process is still underway.
Going forward, Binance would reportedly require Mutual Legal Assistance Treaties or other formal legal channels before it acts on requests to freeze accounts or seize crypto. That could be especially relevant in cross-border cases, where several governments may be involved and the process can stretch on for weeks or even months.
Binance Denies Any Change
Binance says nothing has changed in how it works with U.S. law enforcement. The exchange says it still responds to valid requests through its existing Law Enforcement Request System and continues to follow the legal requirements that apply.
The denial comes as Binance remains under heavy regulatory scrutiny after its $4.3 billion (€3.8 billion) settlement with U.S. authorities in 2023. That agreement added new compliance obligations and ongoing independent monitoring, which makes any report about a shift in cooperation especially sensitive.
Why This Matters for Europe
For European crypto readers, the report is another reminder of how central large exchanges still are to law enforcement work. If informal freezes become harder to get, it could change how stolen or illicit funds are traced, especially when money moves fast across blockchains and national borders.
The pressure is not limited to the U.S. In Europe, Binance is also facing close attention, including tensions around MiCA regulators and questions about whether the exchange is meeting local rules.
For now, it is still unclear whether the reported policy change will actually take effect. That is why traders, regulators, and investigators will likely be watching for more detail from the DOJ, Binance, or additional reporting on how exchanges and law enforcement work together.
