DOJ memo on Binance cooperation sparks friction over asset freezes

The reported guidance, which allegedly took effect June 8, signals a departure from "courtesy freezes"—temporary blocks placed by exchanges to secure assets before formal legal documentation arrives. For investigators chasing stolen funds across global wallets, these informal holds are often the only way to prevent suspects from moving assets into mixers or untraceable jurisdictions. While the Justice Department has not cited a specific instance of a refused request, the internal warning suggests prosecutors should prepare for a more bureaucratic process.

Binance has vehemently denied any change in policy, maintaining that its cooperation with U.S. law enforcement remains unchanged. A company spokesperson emphasized that the exchange continues to process valid requests through its dedicated Law Enforcement Request System. This friction emerges against the backdrop of the exchange's 2023 criminal settlement, in which Binance agreed to pay $4.3 billion and submit to independent monitoring to resolve charges of anti-money laundering and sanctions violations. While the company points to its $300 million annual compliance spend and the processing of over 313,000 global requests, the DOJ’s reported memo underscores a widening gap between the exchange’s claims of transparency and the operational realities faced by federal investigators.