Binance has significantly reduced its cooperation with U.S. law enforcement on cryptocurrency investigations, prompting the Department of Justice to alert prosecutors handling crypto cases to expect diminished support from the exchange going forward.
In early June, the U.S. Department of Justice circulated an internal memorandum warning prosecutors specializing in cryptocurrency matters of the shift in Binance's investigative assistance. Rachel Jones, the department's special counsel for digital assets, advised prosecutors to anticipate "less cooperation" from the exchange on future investigations, according to reporting from The Information.
The development signals a potential friction point between the world's largest cryptocurrency exchange by trading volume and U.S. federal agencies. Binance has faced heightened regulatory scrutiny and enforcement actions from American authorities over anti-money laundering compliance and sanctions violations. The exchange's decision to limit investigative cooperation could complicate ongoing and future prosecutions of cryptocurrency-related crimes, from terrorist financing to market manipulation cases.