DOJ and Binance in dispute over future cooperation

Tensions between Binance and the US government are increasing. In June, the US Department of Justice (DOJ) warned prosecutors via an internal memo that they can count on less cooperation from the crypto exchange in future investigations. The memo refers to new requirements that Binance sets for requests to freeze and seize assets. Reports The Information.

Binance is available at OKX and Bybit.

Binance denies changes in cooperation

The world’s largest crypto exchange responds firmly to the reports. Binance says it has never intended to cooperate less with US law enforcement. In a response, the exchange states that cooperation with the DOJ is actually increasing, not decreasing. The company points out that there may be a misunderstanding regarding certain obligations arising from its ADGM licence.

ADGM, the Abu Dhabi Global Market, has issued guidelines relating to the routing of certain requests. Binance makes clear that these guidelines do not apply in the United States. According to its own statements, the exchange continues to process requests from US law enforcement without any change in procedure.

Long-running monitorship under pressure

This conflict takes place against the backdrop of a long-running monitorship. After Binance reached a criminal settlement with the US government in 2023, the DOJ appointed a monitor. Binance is now actively negotiating to officially conclude this monitorship. At the same time, a separate oversight is in place under the direction of the US Department of the Treasury, which remains in force.

The negotiations between Binance and the DOJ take place amid complex regulations. Earlier, various US regulators had already issued requirements around crypto compliance. It remains unclear how this dispute will develop further and whether both parties can reach an amicable settlement.