Binance Blames Doj Warning On Misread Of Abu Dhabi Rules

What Happened

On Wednesday, BeInCrypto reported that an internal DOJ memo had warned prosecutors to expect less help from Binance in crypto investigations. The memo, first described by The Information, reportedly said Binance would end courtesy freezes.

Investigators would instead need Mutual Legal Assistance Treaties (MLATs) to freeze or seize accounts.

Market Context

In an interview, Binance’s Head of Corporate Communications said the exchange believes the DOJ memo was likely based on a misreading of its obligations under Abu Dhabi Global Market rules. The company said it has already told both the DOJ and ADGM that its process for handling US law enforcement requests will remain unchanged.

Why It Matters

According to the exchange’s Head of Corporate Comms, there could be a potential misunderstanding regarding Binance’s obligations under its Abu Dhabi license.

Read strictly, that could push foreign agencies onto treaty channels like MLATs, mirroring what the memo reportedly anticipated.

Details

Binance has pushed back against a reported US Justice Department warning, telling BeInCrypto that any claims of reduced cooperation with US law enforcement are wrong.

“We are not going to change in any way, shape or form, the way that we interact with law enforcement in America,” the spokesperson told BeInCrypto.

DOJ Memo Sparks a New Controversy for Binance

Binance says it has not seen the memo but does not dispute its existence. However, it firmly rejects the reported claims.

“…because of our global license under the ADGM, we are technically, by ADGM rules, supposed to implement those measures. But they are just guidelines. We are not doing that in America.”

He believes the ADGM wants requests routed through it for standardization, which slows agencies elsewhere.

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What the ADGM Rulebook Actually Says

BeInCrypto examined the rules at the center of the dispute. Binance.com became the first global crypto exchange licensed under the ADGM framework, with supervision starting on January 5, 2026. The changes the memo anticipated reportedly began on June 8, five months into that license.

Crucially, ADGM’s data protection regulations prohibit the transfer of personal data out of the free zone. Official guidance allows disclosures to UAE law enforcement, but states this “would not extend to cover requests from law enforcement agencies outside of the UAE.”

However, the same guidance permits transfers tied to legal claims and cites a US authority’s request as a legitimate example.

The rulebook, therefore, leaves Binance with lawful grounds to continue cooperating with US authorities.

Why the DOJ Memo Matters After the Plea Deal

There is a second layer to the story. Binance pleaded guilty in November 2023 to anti-money laundering and sanctions failures, paying $4.3 billion.

Cooperation was already a sore point then. The DOJ granted Binance only partial credit for its cooperation because the exchange delayed producing evidence.

The deal also required an independent compliance monitor for three years. That oversight has since thinned. The DOJ paused corporate monitorships in 2025, and founder Changpeng Zhao (CZ), who personally pleaded guilty, received a presidential pardon.

In April, Senator Richard Blumenthal pressed the DOJ and Treasury on the status of the monitors. His letters followed reports that over $1 billion moved through Binance to Iran-linked wallets.

With fewer formal levers, prosecutors depend more on voluntary collaboration from exchanges, like courtesy freezes. That dependence explains why an internal warning about Binance pulling back carries real weight.

Exchange Says US Engagement Is Growing, Not Shrinking