Binance Disputes DOJ Memo on US Law Enforcement Cooperation

Binance Disputes Reported DOJ Warning – Exchange Says US Law Enforcement Cooperation Remains Unchanged

Key Takeaways

• Binance rejects claims that it plans to reduce cooperation with US law enforcement following a reported DOJ memo.
• An internal DOJ memo reportedly warned prosecutors to expect less assistance, including the end of courtesy account freezes.
• Binance links the issue to a possible misinterpretation of its obligations under Abu Dhabi Global Market rules.
• The dispute comes as Binance negotiates the end of its DOJ monitorship after its 2023 plea agreement.

Reported DOJ Memo Warns of Reduced Cooperation

An internal memorandum from the US Department of Justice has triggered renewed scrutiny of Binance’s relationship with American authorities. According to reporting first described by The Information and cited by BeInCrypto, the memo advised prosecutors working on crypto cases to expect less cooperation from the exchange.

The document reportedly stated that Binance would end so called courtesy freezes of accounts. Instead of responding directly to informal law enforcement requests, investigators would need to rely on Mutual Legal Assistance Treaties, known as MLATs, to freeze or seize accounts.

Binance told BeInCrypto that it has not seen the memo but does not dispute its existence. However, the company firmly rejected the suggestion that it plans to reduce cooperation with US authorities.

Binance Attributes Issue to ADGM Licensing Framework

Binance’s Head of Corporate Communications said the reported concerns may stem from a misunderstanding of the exchange’s obligations under its license from Abu Dhabi Global Market, or ADGM.

Binance.com became the first global crypto exchange licensed under the ADGM framework, with supervision beginning on January 5, 2026. The changes anticipated in the DOJ memo reportedly began on June 8, five months after the license took effect.

According to Binance, ADGM rules technically require certain measures to be implemented under its global license. The spokesperson described these as guidelines and stated that they are not being applied in the United States.

The company said it has already informed both the DOJ and ADGM that its process for handling US law enforcement requests will remain unchanged. “We are not going to change in any way, shape or form, the way that we interact with law enforcement in America,” the spokesperson told BeInCrypto.

ADGM Data Protection Rules and Cross Border Requests

BeInCrypto reviewed the ADGM rules referenced in the dispute. ADGM data protection regulations prohibit the transfer of personal data out of the free zone. Official guidance allows disclosures to law enforcement agencies within the United Arab Emirates but states that this does not extend to requests from agencies outside the UAE.

Read strictly, this framework could require foreign authorities to use treaty based mechanisms such as MLATs for account freezes or data access. That interpretation mirrors the expectation reportedly outlined in the DOJ memo.

However, the same guidance also permits data transfers connected to legal claims and cites a request from a US authority as a legitimate example. This means the rulebook provides lawful grounds for Binance to continue cooperating with US agencies.

Binance’s communications head suggested that ADGM may prefer requests to be routed through it for standardization purposes, which could slow processing for agencies outside the UAE. At the same time, he emphasized that Binance’s engagement with US law enforcement is not being reduced.

Context: 2023 Plea Deal and Ongoing Oversight

The reported memo comes against the backdrop of Binance’s November 2023 guilty plea to anti money laundering and sanctions violations. The company agreed to pay 4.3 billion dollars as part of the resolution.

At the time, the DOJ granted Binance only partial credit for cooperation, citing delays in the production of evidence. The settlement required the appointment of an independent compliance monitor for a period of three years.

Since then, oversight has changed. The DOJ paused corporate monitorships in 2025. Binance founder Changpeng Zhao, who personally pleaded guilty in connection with the case, received a presidential pardon.

In April 2026, Senator Richard Blumenthal sent letters to the DOJ and the Treasury Department requesting information about Binance’s compliance with its anti money laundering settlements. The inquiry followed reports that more than 1 billion dollars moved through Binance to wallets linked to Iran. The senator publicly referenced reports that the exchange had facilitated billions of dollars connected to Iranian sanctions evasion and illicit Russian oil sales.

Against this background, voluntary cooperation mechanisms such as courtesy freezes carry added weight. With fewer formal oversight tools in place, prosecutors may rely more heavily on direct engagement from exchanges when investigating illicit activity.

Binance Says Engagement With US Authorities Is Increasing

Binance stated that it is in direct contact with the DOJ and that it flagged the reported memo immediately. According to the company, nothing in its operational approach toward US law enforcement is changing.

The spokesperson told BeInCrypto that the exchange is increasing its engagement with American authorities to combat illicit activity on the blockchain. The DOJ has not publicly commented on the reported memo. BeInCrypto said it has reached out to the department for an official response.

The dispute adds to what has been described as a tense year in Washington for the exchange. The Treasury reportedly issued stricter compliance demands following reports tying Iranian funds to the platform. In March, Binance filed a defamation lawsuit against The Wall Street Journal.

Our Assessment

The disagreement centers on whether Binance’s ADGM licensing obligations affect its cooperation with US law enforcement. While an internal DOJ memo reportedly warned prosecutors to expect reduced assistance, Binance states that its processes in the United States remain unchanged and that it has communicated this position to both US and ADGM authorities. The issue unfolds as Binance negotiates the end of its monitorship following its 2023 plea agreement, making law enforcement cooperation a significant element of its regulatory standing.