The US Department of Justice (DOJ) reportedly warned prosecutors to expect reduced cooperation from Binance in the cryptocurrency investigation, according to The Information.
The reported internal documents indicate that investigators may face legal requirements when seeking account freezes and asset seizures. Binance, however, has strongly opposed any changes to its legal compliance policies.
“There was and will be no change in Binance’s cooperation with the US law enforcement authorities. The opposite of this opinion is true – we are looking for ways to improve our cooperation. Binance will continue to cooperate with US law enforcement requests related to their investigations as usual. Any idea that Binance has reduced or reduced cooperation with the police is wrong,” said Benance.
DOJ Memo Signals Tougher Process for Crypto Investigations
According to a report on The Information, the DOJ published an internal warning that handles financial crimes that Binance will no longer offer the so-called “respectful freezing” from June 8.
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Polite and voluntary suspension, temporary account restrictions that exchanges can use for requests from authorities or victims while legal documents are obtained.
The memo says Binance instead requires Mutual Legal Assistance Treaty (MLATs) or other legal mechanisms before processing requests related to account suspension or crypto seizure.
Such a change would delay border checks, as MLAT processes often require the cooperation of several governments and can take weeks or months to complete.
Binance Refuses to Change Affiliate Rules
However, reports indicate that Binance denied the report, saying that it did not implement any changes to its agreement with US law.
The exchange says it continues to respond to legal requests through the established Law Enforcement Request System and remains committed to complying with the required laws.
Rejection comes as Binance is still under a lot of scrutiny Following his impressive $4.3 billion settlement with US authorities in 2023, which included mandatory compliance and independent audits.
Why Is This Report Important?
Even if Binance maintains its current practices, the reported DOJ memo shows growing concern over how the centralized exchange works with regulators around the world.
For researchers, the accidental loss of an account suspension can disrupt efforts to quickly protect stolen or illicit crypto before funds can cross blockchains or domains.
Whether the reported change materializes is not known, especially after the rejection of Binance people.
Investors and industry participants can watch for more scrutiny from the DOJ, Binance, or additional reports, as any change to the client agreement could affect future crypto research, regulatory oversight, and compliance standards in the digital product industry.
A note DOJ Says It Is Warning Binance May Slow Cooperation in Crypto Crime Investigations appeared for the first time BeInCrypto.
