DOJ memo says Binance may curb crypto asset freeze help

Federal prosecutors have been warned to expect significantly reduced cooperation from Binance, the world's largest cryptocurrency exchange, in freezing and seizing assets tied to criminal investigations, according to an internal U.S. Department of Justice memo circulated in June. This potential shift, which Binance has strongly denied, could slow cross-border law enforcement efforts that increasingly rely on the exchange's voluntary assistance.

The memo, written by DOJ digital currency counsel Rachel Jones, reportedly informed prosecutors that beginning in June, Binance would discontinue "courtesy freezes." This long-standing informal practice allowed U.S. law enforcement to request the temporary restriction of accounts or assets while formal legal paperwork was prepared. Instead, the memo stated the exchange would now require a formal Mutual Legal Assistance Treaty (MLAT) request or another official legal process before acting on such requests. MLAT processes involve coordination between multiple governments and can take weeks or months, potentially allowing suspects to move digital assets before they can be secured.

Binance has categorically denied any change in its policy. A...