Binance law enforcement policy slows some police inquiries, NYT reports

Binance law enforcement policy changes have delayed some criminal investigations in Europe and raised concern among U.S. officials, the New York Times reported Tuesday. The issue centers on an April 2025 rule at the world’s largest cryptocurrency exchange that directs police to send certain requests for customer information through foreign government agencies rather than directly to Binance.

The Times reported that the procedure is tied to an international treaty process that can take longer than direct cooperation with an exchange. Investigators told the newspaper that speed is central in cryptocurrency cases because funds can be moved between accounts in seconds.

Binance told the Times that it has not reduced its cooperation with law enforcement. The company said the policy is intended to ensure it complies with regulations and privacy laws when handling customer data.

What is Binance’s law enforcement policy?

According to the Times, the policy requires certain law enforcement requests to be routed through foreign government agencies, a process governed by international treaties. In practice, that can mean police seeking account records must use government-to-government legal channels instead of receiving information directly from Binance.

The Times reported that police officers from five European countries said they had difficulty obtaining information from Binance except in cases involving terrorism, child sexual abuse material or immediate threats to life. Investigators told the newspaper that the policy has made financial crime cases harder to pursue.

U.S. law enforcement is largely exempt from the requirement to send requests through foreign governments, three people familiar with the policy told the Times. Even so, Binance has asked state prosecutors in some instances to use foreign government channels, slowing at least two investigations this year, according to people familiar with those cases and messages reviewed by the Times.

Alona Katz, an assistant district attorney in Brooklyn, told the Times that Binance had often been able to provide information within hours. She said, however, that she could not obtain account records for some users based in the United Arab Emirates. “How fast you get your records determines the outcome of your case,” Katz told the Times. “It’s everything.”

Compliance departures add to scrutiny

The Times also reported that several senior Binance compliance employees have left the company. According to the newspaper, Binance last year fired or suspended several high-ranking compliance staff who had raised concerns about $1.7 billion they said had moved from Binance accounts to Iranian entities.

Binance disputed the employees’ conclusions and said they were not disciplined for raising compliance concerns, according to the Times. The newspaper also reported that other senior compliance employees departed around the same period.

The scrutiny comes as U.S. policy toward the cryptocurrency industry has shifted. The Times cited a memo last year from Todd Blanche, now acting attorney general, saying the administration would focus on criminals who misuse cryptocurrency platforms rather than regulating exchanges themselves.

The report also noted that President Donald Trump pardoned former Binance chief executive Changpeng Zhao, who had been jailed in connection with the prior administration’s prosecution of Binance over anti-money-laundering deficiencies. Binance has also done business with World Liberty Financial, the cryptocurrency firm founded by Trump and his sons, according to the Times.

This story draws on original reporting from PYMNTS.