Binance Tells DOJ: Read the Fine Print 📜

Binance has rejected a U.S. Justice Department warning that prosecutors should expect reduced cooperation from the exchange in crypto investigations, telling BeInCrypto that any such characterization is inaccurate. In an interview, the company's Head of Corporate Communications said the exchange believes the DOJ memo was likely based on a misreading of its obligations under Abu Dhabi Global Market rules. The exchange said it has already informed both the DOJ and ADGM that its process for handling U.S. 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.

The exchange's pushback follows reporting that, in early June, the Justice Department sent a memo to attorneys working on crypto cases flagging expectations of less cooperation from Binance. The memo, first described by The Information, reportedly said Binance would end "courtesy" account freezes, with investigators instead required to use Mutual Legal Assistance Treaties (MLATs) to freeze or seize assets. Binance said it has not seen the memo but does not dispute its existence, while firmly rejecting the reported substance.

The dispute centers on Binance's obligations under its ADGM license. Binance.com became the first global crypto exchange licensed under the ADGM framework, with supervision commencing on January 5, 2026. According to the Head of Corporate Communications, the ADGM wants requests routed through it for standardization, a process that can slow agencies elsewhere. As reported, the changes the memo anticipated began on June 8, five months into that license.

BeInCrypto's review of the rules noted that ADGM's data protection regulations prohibit the transfer of personal data out of the free zone, with official guidance stating such disclosures to UAE law enforcement "would not extend to cover requests from law enforcement agencies outside of the UAE." The same guidance, however, permits transfers tied to legal claims and cites a U.S. authority's request as a legitimate example, leaving Binance with lawful grounds to continue cooperating with U.S. authorities.

The DOJ memo arrives as Binance negotiates a formal end to its DOJ monitorship, implemented following the exchange's 2023 criminal case. Under the plea arrangement, DOJ monitoring began in May 2024 and is set to last three years, with the possibility of a one-year extension that could push its conclusion to May 2027, followed by an additional two-year U.S. Treasury oversight. Outside the United States, Binance was recently blocked from the EU after failing to secure MiCA approval, and earlier this year it dismissed claims that it facilitated $1 billion in flows to sanctioned Iran, a denial that prompted some lawmakers to call for a review of the DOJ monitoring.