Binance, the world’s largest cryptocurrency exchange by trading volume, is reportedly altering its response to U.S. law enforcement requests, a change that could impede efforts to swiftly freeze crypto assets linked to criminal investigations.
An internal Department of Justice memo obtained by The Information indicates that Binance informed federal prosecutors it would discontinue “courtesy freezes” of accounts beginning June 8. Going forward, law enforcement will be required to rely on formal Mutual Legal Assistance Treaty (MLAT) procedures before initiating account freezes or asset seizures.
Courtesy freezes enable crypto exchanges to temporarily restrict suspicious accounts within hours of receiving a law enforcement request, typically prior to the completion of formal legal processes. In contrast, MLAT procedures often involve lengthy delays, spanning weeks or months.
New Restrictions Could Slow U.S. Crypto Investigations
The Department of Justice reportedly issued a memo in early June alerting attorneys handling crypto-related cases to anticipate limited cooperation from Binance.
The communication, authored by Rachel Jones, the DOJ’s digital currency counsel, and reviewed by The Information, highlighted that Binance would introduce “burdensome new requirements” for prosecutors pursuing asset freezes and seizures on its platform.
Scoop: In early June, the Justice Department sent out a memo warning its attorneys working on crypto cases that they should expect less cooperation from Binance.
This comes as Binance is actively negotiating a formal end to its DOJ monitorship, implemented after the landmark… pic.twitter.com/Ty0K9CzOaM
— Leo Schwartz (@leomschwartz) July 8, 2026
Despite the memo, a Binance spokesperson disputed claims of altered cooperation policies with U.S. law enforcement.
A Troubled History With U.S. Regulators
The policy adjustment emerges amid reports that Binance is negotiating the termination of a DOJ monitoring agreement established after the exchange pleaded guilty in 2023 to charges including Bank Secrecy Act violations, unregistered money-transmitting operations, and sanctions breaches.
As part of the $4.3 billion settlement, Binance committed to enhancing its compliance framework, aiding U.S. authorities, and submitting to independent oversight.
The exchange has since continued collaborating with law enforcement on probes into illicit crypto activities, including sanctions evasion and fraud schemes.
In October 2025, President Donald Trump pardoned Binance founder Changpeng Zhao (CZ). Earlier that year, Deputy Attorney General Todd Blanche signaled a DOJ pivot away from “regulation by enforcement” in the crypto sector.
Why This Matters
The capacity to rapidly freeze digital assets has become vital for law enforcement, as cryptocurrencies can transfer across borders within minutes.
Any modification reducing the speed of emergency account restrictions could hinder investigators’ ability to recover stolen funds, dismantle illicit networks, or prevent suspects from relocating assets beyond reach.
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