The U.S. Department of Justice (DOJ) issued an internal memo in June warning that prosecutors handling cryptocurrency cases may see weakened cooperation from the world's largest exchange, Binance, in freezing and seizing assets related to criminal cases; the memo states that Binance plans to impose conditions before meeting freezing and seizure requirements. Binance denies any changes, claiming its cooperation with U.S. law enforcement has remained unchanged in the past and will continue to do so.
U.S. DOJ June Memo: Binance Plans to Attach Conditions Before Freezing Assets
According to reports, DOJ digital currency legal advisor Rachel Jones authored this internal memo in June 2026, distributing it to personnel directly involved in cryptocurrency cases, with copies sent to senior staff such as Kevin Mosley. The memo warns that Binance's plan to attach conditions before fulfilling freezing and seizure requests could impact the entire cryptocurrency enforcement sector.
Binance holds approximately 39% of the global spot cryptocurrency trading market and has historically played a key role in tracking, freezing, and recovering illicit digital assets obtained through hacking, ransomware, sanctions violations, and fraud.
Binance: Abu Dhabi ADGM License Structure Misinterpreted by DOJ
In response, Binance states that the controversy stems from official guidance from the ADGM Data Protection Office; the ADGM license took effect on January 5, 2026, and its guidance states that exemptions allowing necessary disclosures "do not apply to requests made by law enforcement outside the UAE."
Binance interprets the guidance as permitting necessary transfers "to establish, exercise, or defend legal claims (including judicial, administrative, regulatory, and out-of-court procedures)," and the guidance lists applicable examples required by U.S. regulators. Binance’s corporate communications chief said the company is expanding, not reducing, cooperation with the DOJ and has contacted officials from both the DOJ and ADGM for clarification.
Binance 2023 Settlement Agreement Includes "Comprehensive Cooperation" Requirement
According to reports, in November 2023, Binance admitted to violating the Bank Secrecy Act, including operating unauthorized remittance companies and violating sanctions, agreeing to pay over $4.3 billion in fines and undergo a three-year independent compliance review, with a "comprehensive cooperation" clause.
However, since then, the DOJ has paused many corporate monitoring programs; Deputy Attorney General Todd Blanche’s April 2025 memo ended "prosecutorial regulation" over digital assets and led to the closure of the national cryptocurrency enforcement task force, making current enforcement efforts more reliant on Binance’s voluntary cooperation.
Cambodian Huione Group Transfers $408 Million; $1 Billion Iran-Related Transfers Under Investigation
Reports indicate several compliance cases have raised concerns: the International Consortium of Investigative Journalists (ICIJ) reported that the Cambodia-linked Huione Group transferred at least $408 million via Binance in November 2025, when Binance was still under court supervision; in April 2026, Senator Richard Blumenthal requested the DOJ and Treasury Department provide information on reports of over $1 billion transferred through Binance to Iran-related wallets.
Former DOJ fraud official Scott Armstrong said that the rumored changes could create "an additional, unnecessary obstacle, causing significant problems for law enforcement."
Frequently Asked Questions
What does the DOJ memo say, and how has Binance responded?
Reports state that the DOJ’s June 2026 internal memo warned prosecutors that Binance’s plan to attach conditions before freezing and seizing assets might weaken cooperation; Binance denies any changes, claiming DOJ officials misunderstood its responsibilities under the Abu Dhabi ADGM license structure and has contacted DOJ and ADGM officials for clarification.
How does the Abu Dhabi ADGM license trigger this controversy?
According to reports, Binance has been regulated under ADGM licensing since January 5, 2026; the official guidance from the ADGM Data Protection Office states that exemptions for necessary disclosures "do not apply to requests made by law enforcement outside the UAE." DOJ believes this could mean Binance needs to submit MLAT requests to cooperate in asset freezes; Binance argues the guidance still allows cooperation with legal procedures.
What could be the consequences if Binance does not cooperate with law enforcement?
Reports indicate Binance accounts for about 39% of global spot crypto trading volume; if Binance ceases "courtesy freezes" and instead requires formal legal procedures, investigators may face longer delays in recovering potentially transferred digital assets, significantly impacting cross-border cryptocurrency enforcement efficiency.
