Police complain that Binance is making it harder to track crypto scammers: NYT
Prosecutors warn that the exchange's new rules drag out the time it takes to freeze stolen assets, giving cybercriminals a massive head start.
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Prosecutors warn that the exchange's new rules drag out the time it takes to freeze stolen assets, giving cybercriminals a massive head start.
Police complain that Binance is making it harder to track crypto scammers: NYT
Finance
Binance makes fighting crypto crime more difficult, says new report
The New York Times says a quiet change to Binance's compliance rules is forcing international law enforcement to navigate slow-moving government treaties to get user data.
By
Olivier Acuna
|
Edited by
Jamie Crawley
Jul 28, 2026, 12:24 p.m.
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Summary
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Binance has adopted a policy that routes most foreign law enforcement requests through the United Arab Emirates and Mutual Legal Assistance Treaties, slowing access to user data, according to The New York Times.
European investigators and U.S. prosecutors say the changes are making it harder to track scammers, combat money laundering and quickly freeze or seize assets, though Binance still responds directly in cases involving child sexual abuse, terrorism or imminent threats to life.
Binance insists it has not reduced cooperation with authorities and frames the new procedures as stronger safeguards consistent with regulated institutions, even as the company faces ongoing scrutiny over its compliance operations.
Binance adopted a policy in April 2025 that has made it harder for law enforcement agencies in some countries to obtain user information, The New York Times (NYT)
reported Tuesday
.
The world's largest cryptocurrency exchange "changed how it cooperates with law enforcement in many countries around the world, frustrating investigators who say the company has made it harder to find scammers and combat money laundering," the NYT said.
The NYT cited discussions that took place during a June law enforcement conference held in the Netherlands, where police officials from five European countries described difficulties obtaining information from Binance. The exchange still responded directly in cases involving child sexual abuse material, terrorism or an imminent threat to life, according to the report.
Most other requests were being directed through the government of the United Arab Emirates, where Binance has regulated operations, substantially increasing response times, the NYTreported, citing a senior European law enforcement official. Binance’s regulated UAE entities operate under Abu Dhabi Global Market.
"How fast you get your records determines the outcome of your case," Alona Katz, an assistant district attorney in Brooklyn, told the NYT.
Under the policy, foreign law enforcement agencies must route certain requests through Mutual Legal Assistance Treaties, or MLATs. The treaties provide a formal process for governments to exchange evidence and information in criminal investigations, but requests can take considerably longer than direct cooperation with an exchange.
The change represents a departure from Binance’s previous approach, under which it worked directly with authorities to freeze suspicious accounts and provide information about users under investigation, the NYT said.
“Binance has not slowed its cooperation with global law enforcement,” a spokesperson said in an email to CoinDesk. “On the contrary, we have increased our cooperation year over year, while navigating the increasing complexity of government approaches to crypto regulation and data protection.”
The spokesperson said Binance continues to prioritize collaboration with law enforcement agencies worldwide, including in the U.S. and Europe. Binance said its assistance goes “beyond any legal obligation upon us and what traditional financial services firms typically do.”
“This is a deliberate strengthening of the controls and safeguards that govern how we cooperate, which is consistent with the standards expected of a regulated institution,” the spokesperson added.
The NYT's report follows a similar
account from The Information
this month, which
cited a Justice Department (DOJ) memo warning
federal prosecutors handling crypto cases that they should prepare for less assistance from Binance when seeking to freeze or seize assets. Binance denied that its cooperation with U.S. authorities had changed.
The DOJ did not immediately respond to a CoinDesk request for comment on the memo.
The news reports come amid continued scrutiny of Binance’s compliance operations. The Wall Street Journal and Fortune
reported earlier this year
that the exchange had dismissed compliance employees who investigated transactions allegedly connected to Iran. Binance denied the allegations and accused both publications of relying on false or defamatory claims.
Binance
Crime
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Latest Research
Crypto Flows, Share and the Selective Rotation
Crypto Flows, Share and the Selective Rotation
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
By
CoinDesk Research
Jul 22, 2026
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters
:
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
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Original YayaNews editorial coverage, published for informational purposes.
This article is sourced from CoinDesk. It is for informational purposes only and does not constitute investment advice.
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