GoCheckMyCrypto.comBinance makes fighting crypto crime more difficult, says new report
The New York Times reported that Binance adopted a policy in April 2025 routing most foreign law enforcement data requests through the United Arab Emirates government and Mutual Legal Assistance Treaties (MLATs), substantially increasing response times. Police officials from five European countries described difficulties obtaining information from Binance during a June law enforcement conference.
The New York Times reported on Tuesday that Binance adopted a policy in April 2025 that changed how it cooperates with law enforcement in many countries. Most foreign law enforcement requests are now routed through the government of the United Arab Emirates, where Binance has regulated operations, substantially increasing response times. Binance still responds directly in cases involving child sexual abuse material, terrorism, or imminent threat to life.
Police officials from five European countries described difficulties obtaining information from Binance during a June law enforcement conference held in the Netherlands. The change represents a departure from Binance's previous approach, when the exchange worked directly with authorities to freeze suspicious accounts and provide information about users under investigation.
Alona Katz, an assistant district attorney in Brooklyn, stated: "How fast you get your records determines the outcome of your case." The shift to Mutual Legal Assistance Treaties (MLATs), which require foreign law enforcement to route requests through government-to-government channels, adds procedural steps and delays that investigators say hamper the tracking of scammers and money launderers.
A Justice Department memo cited by The Information warned federal prosecutors handling crypto cases to prepare for less assistance from Binance when seeking to freeze or seize assets. Binance denied that its cooperation with U.S. authorities had changed.
Binance characterized the change as "a deliberate strengthening of the controls and safeguards that govern how we cooperate, which is consistent with the standards expected of a regulated institution." In a statement, a Binance spokesperson said: "Binance has not slowed its cooperation with global law enforcement. On the contrary, we have increased our cooperation year over year." The exchange also asserted its assistance goes "beyond any legal obligation upon us and what traditional financial services firms typically do."
The retrenchment follows earlier reporting by the Wall Street Journal and Fortune that Binance had dismissed compliance employees who investigated transactions allegedly connected to Iran. Binance denied those allegations, accusing both publications of relying on false or defamatory claims.
Binance's shift to MLAT-based cooperation in April 2025 means international investigators now face slower, treaty-dependent channels instead of direct exchange access, forcing them to prepare for less assistance in asset freeze and seizure operations, according to a Justice Department memo cited by The Information.
Watch whether the U.S. Department of Justice challenges Binance's policy change formally, and monitor whether other major exchanges adopt similar MLAT-based structures in response. The gap between law enforcement's stated need for speed and Binance's legal assertion of procedural strengthening will shape how regulators approach the next wave of compliance enforcement.
And that's the way it is.
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