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Binance (Law Enforcement Cooperation Rollback)

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Summary

Beginning in April 2025, Binance quietly instituted a policy requiring law enforcement agencies to route freeze and seizure requests through formal Mutual Legal Assistance Treaty (MLAT) channels rather than accepting direct informal requests, adding weeks to response timelines. A DOJ internal memo circulated in June 2026 warned U.S. prosecutors to expect no courtesy freezes from Binance effective June 8, 2026, while police from five European countries raised cooperation failures at a law enforcement conference in the Netherlands. Binance publicly denied any policy change, directly contradicting the DOJ memo and contemporaneous reporting by The New York Times and The Information.

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Timeline(17 events)

21 November 2023

Binance pleads guilty to Bank Secrecy Act violations and sanctions offenses; agrees to pay over $4.3 billion. Founder Changpeng Zhao resigns and pleads guilty personally. FinCEN imposes five-year monitorship.

DOJ Press Release

March 2024

Alleged start of $1.7 billion in cryptocurrency transfers from two Binance accounts to Iran-linked entities, per internal investigator reports.

Fortune

8 April 2025

Deputy Attorney General Todd Blanche disbands the DOJ's National Cryptocurrency Enforcement Team (NCET) effective immediately.

CoinDesk

April 2025

Binance quietly institutes new policy requiring most foreign law enforcement freeze and seizure requests to be routed through UAE government channels and formal MLAT processes rather than accepted directly.

CoinDesk / NYT via PYMNTS

24 October 2025

President Trump pardons Binance founder Changpeng Zhao.

NPR

5 January 2026

Binance.com begins operating under Abu Dhabi Global Market (ADGM) licensing.

CryptoTimes

2026

Erin Fracolli, Binance global head of special investigations, departs.

AML Intelligence / Bloomberg

13 February 2026

Fortune reports Binance fired or suspended at least four internal investigators who had flagged $1.7 billion in alleged Iran-linked flows.

Fortune

February 2026

Jarek Jakubcek, Binance head of intelligence and investigations in Asia Pacific, departs.

AML Intelligence / Bloomberg

25 February 2026

Senator Richard Blumenthal opens Senate inquiry into Binance over alleged $1.7 billion in Iran-linked cryptocurrency flows.

CoinDesk

March 2026

Peter Van Logtenstein (global investigations unit lead) and Inga Petrauskaitė (financial crime investigations team lead) depart Binance.

AML Intelligence / Bloomberg

6 April 2026

Bloomberg reports wave of senior Binance compliance staff departures from financial crime, sanctions, and monitoring roles. CCO Noah Perlman reported to be considering exit.

Bloomberg / Fintech Singapore

8 June 2026

Effective date cited in DOJ internal memo for Binance ending courtesy freezes and requiring MLAT or formal legal process for asset holds and seizures.

CryptoTimes / BeInCrypto

June 2026

Law enforcement conference held in the Netherlands; police from five European countries raise concerns about Binance cooperation failures under the new MLAT-only policy.

NYT via CoinDesk / PYMNTS

June 2026

Treasury-appointed compliance monitor Sharon Cohen Levin hosts town hall with Binance co-CEO Richard Teng and new regulatory adherence head Andrew Stemmer.

Cryptopolitan

9 July 2026

Initial reporting on the DOJ internal memo circulates widely in crypto media; Binance issues categorical denial of any policy change.

CryptoTimes / BeInCrypto

28 July 2026

The New York Times publishes comprehensive report confirming Binance changed law enforcement cooperation procedures, frustrating investigators globally. CoinDesk covers the NYT report.

CoinDesk (citing NYT)
Provenance & Audit Trail

Decision Log

This investigation is cryptographically anchored to the Solana blockchain (3 events). 25 of 26 cited source URLs have an Internet Archive snapshot.

model: claude-sonnet-4-6

generated: 7/29/2026, 11:29:39 PM

last updated: 8/8/2026, 2:42:26 AM

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