Binance Blames DOJ Warning on Misread of Abu Dhabi Rules
Binance has pushed again towards a reported US Justice Department warning, telling BeInCrypto that any claims of decreased cooperation with US legislation enforcement are flawed.
In an interview, Binance’s Head of Corporate Communications stated the trade believes the DOJ memo was doubtless primarily based on a misreading of its obligations underneath Abu Dhabi Global Market guidelines. The firm stated it has already advised each the DOJ and ADGM that its course of for dealing with US legislation enforcement requests will stay unchanged.
“We should not going to vary in any means, form or type, the best way that we work together with legislation enforcement in America,” the spokesperson advised BeInCrypto.
DOJ Memo Sparks a New Controversy for Binance
On Wednesday, BeInCrypto reported that an inner DOJ memo had warned prosecutors to expect much less assist from Binance in crypto investigations. The memo, first described by The Information, reportedly stated Binance would finish courtesy freezes.
Investigators would as a substitute want Mutual Legal Assistance Treaties (MLATs) to freeze or seize accounts.
Binance says it has not seen the memo however doesn’t dispute its existence. However, it firmly rejects the reported claims.
According to the trade’s Head of Corporate Comms, there might be a possible misunderstanding relating to Binance’s obligations under its Abu Dhabi license.
“…as a result of of our international license underneath the ADGM, we’re technically, by ADGM guidelines, purported to implement these measures. But they’re simply tips. We should not doing that in America.”
He believes the ADGM needs requests routed via it for standardization, which slows companies elsewhere.
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What the ADGM Rulebook Actually Says
BeInCrypto examined the principles on the middle of the dispute. Binance.com grew to become the primary international crypto trade licensed underneath the ADGM framework, with supervision beginning on January 5, 2026. The adjustments the memo anticipated reportedly started on June 8, 5 months into that license.
Crucially, ADGM’s information safety laws prohibit the switch of private information out of the free zone. Official guidance permits disclosures to UAE legislation enforcement, however states this “wouldn’t lengthen to cowl requests from legislation enforcement companies outdoors of the UAE.”
Read strictly, that might push overseas companies onto treaty channels like MLATs, mirroring what the memo reportedly anticipated.
However, the identical steerage permits transfers tied to authorized claims and cites a US authority’s request as a respectable instance.
The rulebook, subsequently, leaves Binance with lawful grounds to proceed cooperating with US authorities.
Why the DOJ Memo Matters After the Plea Deal
There is a second layer to the story. Binance pleaded responsible in November 2023 to anti-money laundering and sanctions failures, paying $4.3 billion.
Cooperation was already a sore level then. The DOJ granted Binance solely partial credit score for its cooperation as a result of the trade delayed producing proof.
The deal additionally required an unbiased compliance monitor for 3 years. That oversight has since thinned. The DOJ paused company monitorships in 2025, and founder Changpeng Zhao (CZ), who personally pleaded responsible, received a presidential pardon.
In April, Senator Richard Blumenthal pressed the DOJ and Treasury on the standing of the displays. His letters adopted experiences that over $1 billion moved via Binance to Iran-linked wallets.
With fewer formal levers, prosecutors rely extra on voluntary collaboration from exchanges, like courtesy freezes. That dependence explains why an inner warning about Binance pulling again carries actual weight.
Exchange Says US Engagement Is Growing, Not Shrinking
Binance confirmed it’s in direct contact with the DOJ and says it flagged the memo instantly.
“We’ve advised the DOJ, we’re not altering something… like nothing is altering. Rather we’re rising our engagement with legislation enforcement and with the DOJ in America in an effort to cease illicit exercise on the blockchain.”
The episode caps a tense yr in Washington. The Treasury reportedly issued stricter compliance demands after experiences tied Iranian funds to the platform, and Binance filed a defamation lawsuit towards The Wall Street Journal in March.
The DOJ has not commented publicly. Whether it revises the steerage stands out as the clearest sign of the place the connection stands.
Editor’s Note: BeInCrypto has reached out to the US Department of Justice (DOJ) for an official response relating to the interior memo and Binance’s statements. This article might be up to date as quickly as a remark or formal assertion is obtained.
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