Binance routes law enforcement requests through government treaties, slowing investigations
In brief
- Binance routes law enforcement requests through government channels via MLATs starting April 2025, replacing direct cooperation
- Mutual Legal Assistance Treaties significantly extend investigation timelines compared to direct exchange cooperation
- Binance exempts child exploitation, terrorism, and imminent threats from the new routing policy
- U.S. Justice Department warned federal prosecutors to expect reduced Binance assistance in asset freezing and seizure
- Binance frames the policy as strengthening safeguards for a regulated institution, denies slowing cooperation
The Policy Shift
Binance changed how it cooperates with law enforcement in many countries, frustrating investigators who say the company made it harder to find scammers and combat money laundering. Police officials from five European countries described difficulties obtaining information from Binance during a June law enforcement conference in the Netherlands.
The change represents a departure from Binance's previous approach, under which it worked directly with authorities to freeze suspicious accounts and provide information about users under investigation. Now, most law enforcement requests are being directed through the government of the United Arab Emirates, where Binance has regulated operations, substantially increasing response times.
Routing Through Treaties
Foreign law enforcement agencies must route certain requests through Mutual Legal Assistance Treaties, or MLATs, under the new policy. These treaties are formal diplomatic agreements between governments. MLAT requests can take considerably longer than direct cooperation with an exchange, creating delays that can undermine active investigations.
A Justice Department memo warned federal prosecutors handling crypto cases that they should prepare for less assistance from Binance when seeking to freeze or seize assets. The memo signals that U.S. law enforcement expects the friction to persist.
Binance still responds directly in cases involving child sexual abuse material, terrorism, or an imminent threat to life. But for routine fraud investigations, financial crimes, and money laundering cases, the MLAT route is now standard.
Binance's Defense
Binance denied that its cooperation with U.S. authorities had changed, but the company didn't dispute the policy itself. The exchange framed the shift as a safeguard for regulated institutions.
"This is a deliberate strengthening of the controls and safeguards that govern how we cooperate, which is consistent with the standards expected of a regulated institution." — Binance spokesperson
The Wall Street Journal and Fortune reported earlier this year that the exchange had dismissed compliance employees who investigated transactions allegedly connected to Iran. Binance denied the allegations and accused both publications of relying on false or defamatory claims.
The timing of the policy—just months after the compliance dismissals—raises questions about whether the two moves are connected. Investigators say the delay matters. As one Brooklyn assistant district attorney put it: how fast you get records determines the outcome of your case.
