DOJ Told Prosecutors to Expect Less Cooperation From Binance

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The U.S. Department of Justice reportedly warned prosecutors to expect less cooperation from Binance in crypto-related investigations, raising new questions about law-enforcement access to records and account freezes at the world’s largest cryptocurrency exchange. According to reporting by The Information, a recent DOJ memo told staff that Binance would reduce voluntary cooperation on crypto cases beginning June 8. The reported changes include ending “courtesy” freezes and requiring prosecutors to use formal Mutual Legal Assistance Treaty channels for freezes, seizures and some other law-enforcement requests. Binance denied that it is changing how it cooperates with U.S. law enforcement. The reported shift matters because Binance has long been one of the most important venues for global crypto trading and cross-border fund flows. Investigators often rely on exchanges to identify account holders, freeze suspicious funds and respond quickly when stolen or illicit assets move through centralized platforms. If cooperation slows, prosecutors may face longer timelines in cases involving hacks, sanctions evasion, ransomware, fraud, terrorist financing or money laundering. The memo comes against the backdrop of Binance’s 2023 criminal settlement with U.S. authorities. The company agreed to pay $4.3 billion after pleading guilty to anti-money-laundering, sanctions and money-transmission violations. Founder Changpeng Zhao pleaded guilty to failing to maintain an effective anti-money-laundering program and was later sentenced to four months in prison. The practical issue is speed. Crypto investigations are time-sensitive because stolen funds can move across wallets, chains, exchanges and mixers within minutes. Voluntary cooperation or informal account freezes can help investigators preserve assets while legal paperwork catches up. Requiring MLAT processes can create delays because those requests often involve foreign ministries, courts and law-enforcement agencies across multiple jurisdictions. That does not mean formal channels are improper. Companies operating globally often require valid legal process before freezing accounts or producing records, especially where customer data, local law and cross-border jurisdiction are involved. Binance is not headquartered in the United States and operates through a complex international structure, making legal-process questions more difficult than they are for domestic financial institutions. Still, the DOJ warning suggests prosecutors may need to adjust expectations. If Binance stops providing certain courtesy actions, U.S. investigators may have to rely more heavily on subpoenas, MLATs, court orders, blockchain analytics, partner agencies and domestic intermediaries. That could make asset recovery more difficult in fast-moving cases. The issue also intersects with Binance’s monitorship obligations. As part of its U.S. settlements, Binance became subject to independent compliance monitoring intended to improve anti-money-laundering controls, sanctions compliance and law-enforcement responsiveness. Any perceived reduction in cooperation is therefore likely to draw scrutiny from regulators, lawmakers and compliance monitors. Binance has continued to face questions over illicit finance controls despite its settlement. Earlier this year, lawmakers and media reports raised concerns about alleged money flows linked to sanctions evasion and high-risk counterparties. Binance has denied wrongdoing in several cases and has argued that it invests heavily in compliance, investigations support and transaction-monitoring systems. For prosecutors, the reported DOJ memo may complicate crypto enforcement at a time when illicit finance remains a central policy concern. Centralized exchanges are often the point where pseudonymous blockchain activity meets identifiable customers. If access to those choke points becomes slower or more formalized, enforcement agencies may struggle to intervene before funds are withdrawn or converted. For Binance, stricter legal-process requirements may reflect an attempt to standardize global law-enforcement handling, reduce legal risk and avoid acting on informal requests that could conflict with local regulations. The company may argue that requiring formal channels protects users and ensures requests are legally valid. Related: Binance Sees $1.23 Billion in Weekly Outflows, Highest in More Than 3 Years The broader market impact is reputational rather than price-driven. Investors are unlikely to trade crypto assets directly on the basis of a DOJ memo, but the report reinforces Binance’s continuing regulatory sensitivity. It also shows that major exchanges remain critical infrastructure for both crypto markets and financial-crime enforcement. The unresolved question is whether Binance’s approach represents a narrower procedural change or a deeper deterioration in its relationship with U.S. authorities. If cooperation slows materially, prosecutors may face tougher investigations and Binance may face renewed political pressure. Either outcome would keep the exchange at the center of the global debate over crypto compliance.

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