Binance Routes Foreign Law Enforcement Requests Through the UAE, Frustrating Investigators, NYT Reports

Binance adopted a policy in April 2025 that routes foreign law enforcement requests through the United Arab Emirates government and formal treaty channels rather than answering them directly, and investigators say the change has made it harder to track scammers and freeze stolen funds, The New York Times reported Tuesday.

The Times cited a law enforcement conference in the Netherlands last month where police officials from five European countries described difficulty obtaining information from the exchange except in cases involving child sexual abuse material, terrorism, or an imminent threat to life. Most other requests are directed through Abu Dhabi, where the exchange’s regulated entities operate under Abu Dhabi Global Market, or must travel through Mutual Legal Assistance Treaties, the government-to-government process for exchanging evidence in criminal cases.

Speed decides outcomes in crypto investigations, because illicit funds can be bridged, swapped, and mixed within seconds.

The Times report follows an account this month from The Information, which cited a Justice Department memo warning federal prosecutors in crypto cases to expect less help from Binance on freezing and seizing assets.

Binance agreed to a $4.3 billion penalty in November 2023 to resolve DOJ money laundering and sanctions charges, with founder Changpeng Zhao pleading guilty to a Bank Secrecy Act violation and the company accepting years of independent monitoring. In May, The Information reported that the Treasury Department had privately pressed the exchange to comply with that monitoring program after reports of roughly $1 billion in Iran-linked flows.

The Wall Street Journal and Fortune reported earlier this year that Binance had dismissed compliance staff who investigated transactions allegedly tied to Iran, allegations the exchange denied.

Related Listen: Why Authorities Can’t Freeze Crypto Fast Enough: DEX in the City

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