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DOJ Memo Suggests Binance May Reduce Law Enforcement Cooperation; Company Denies Change
Summary
An internal Department of Justice memo reportedly warned prosecutors that Binance would introduce new requirements for asset freezes, raising questions about its cooperation. The cryptocurrency exchange has denied that any changes to its procedures are being made.
The U.S. Department of Justice reportedly warned its attorneys in an internal memo that cryptocurrency exchange Binance would reduce its cooperation on digital currency cases. According to a report from The Information, the memo, sent in early June by the DOJ’s digital currency counsel, Rachel Jones, stated that Binance would institute new requirements for prosecutors seeking to freeze and seize assets on its platform.
In response to the report, a spokesperson for Binance denied that the company was implementing any new procedures. "There has been and will be no change to Binance’s cooperation with U.S. law enforcement," the spokesperson said in a statement. The company's stance contradicts the contents of the internal government email.
This development comes after Binance pleaded guilty in 2023 to charges of money laundering and violations of the Bank Secrecy Act. As part of a plea agreement, the exchange agreed to a $4.3 billion settlement and was required to "cooperate fully" with both domestic and foreign law enforcement agencies.
AdPrior to this, the UAE-based exchange had been actively working with U.S. authorities to trace, freeze, and seize illicit cryptocurrency flows. This cooperation included cases involving sanctions violations and fraudulent schemes. Scott Armstrong, a former assistant chief at the Justice Department’s fraud section, told The Information that such a change in policy would create an "unnecessary hurdle" for the law enforcement community.