Binance, the world’s largest cryptocurrency exchange by trading volume, is reportedly changing how it responds to U.S. law enforcement requests — a move that could complicate efforts to quickly freeze crypto assets tied to criminal investigations.
According to an internal Department of Justice memo obtained by The Information, Binance told federal prosecutors it would no longer provide so-called “courtesy freezes” of accounts starting June 8. Instead, authorities would need to use formal Mutual Legal Assistance Treaty (MLAT) procedures before accounts could be frozen or assets seized.
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Courtesy freezes allow crypto exchanges to temporarily lock suspicious accounts within hours of receiving a request from law enforcement or victims, often before formal legal documentation is available. By contrast, MLAT procedures can take weeks or even months to complete.
New Restrictions Could Slow U.S. Crypto Investigations
Reportedly, the Department of Justice sent a memo in early June warning attorneys handling crypto-related cases that they should expect reduced cooperation from Binance.
The email, sent by Rachel Jones, the DOJ’s digital currency counsel, and reviewed by The Information, stated that Binance would be instituting “onerous new requirements for prosecutors seeking asset freezes and seizures on its platform.”
A Binance spokesperson, however, denied that the company was changing its approach to cooperation with U.S. law enforcement.
A Troubled History With U.S. Regulators
The reported change comes as Binance is said to be negotiating the formal conclusion of the DOJ monitoring arrangement imposed after the company pleaded guilty in 2023 to violations of the Bank Secrecy Act, failure to register as a money-transmitting business, and sanctions-related violations.
Binance admitted wrongdoing and agreed to pay a $4.3 billion settlement. As part of the resolution, the exchange agreed to strengthen its compliance program, cooperate with U.S. authorities, and operate under independent monitoring requirements.
Since then, Binance has continued cooperating with law enforcement agencies on investigations involving illicit cryptocurrency activity, including sanctions violations and fraud-related cases.
In October 2025, President Donald Trump pardoned Binance founder Changpeng Zhao (CZ). Earlier that year, Deputy Attorney General Todd Blanche said the Justice Department would move away from what he described as “regulation by enforcement” in the crypto industry.
Why This Matters
The ability to quickly freeze digital assets has become a critical tool for law enforcement because cryptocurrency can move across borders within minutes.
Any shift that slows emergency account restrictions could make it harder for investigators to recover stolen funds, disrupt illicit networks, or prevent suspected criminals from moving assets beyond reach.
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