The U.S. Department of Justice has told prosecutors handling crypto cases that requests for Binance to freeze accounts or seize assets may need to move through a tougher process, according to an internal memo reported on July 8.
The memo says Binance will no longer offer its so-called “Courtesy Freeze” service in the same way, and that authorities will need to use formal legal channels first. That includes the Mutual Legal Assistance Treaty, or MLAT, a government-to-government process often used in cross-border investigations.
That matters because MLAT requests can take weeks or even months to work through. For investigators, the change would add paperwork and time before an exchange can be asked to act. For cases involving fast-moving crypto transfers, that slower pace can complicate efforts to secure funds before they move again.
Binance pushed back on the report. The exchange said there has been no change in how it cooperates with U.S. law enforcement.
The dispute leaves two very different readings of the same situation. On one side, the DOJ memo points to a stricter, more formal path for asset-freezing requests. On the other, Binance says its cooperation remains unchanged, suggesting the market should wait for a confirmed policy update rather than assume a new enforcement rule is already in place.
For traders and compliance teams, the next thing to watch is whether prosecutors or Binance issue a public clarification, or whether formal MLAT requests start showing up more often in crypto investigations. If the DOJ’s internal guidance is being applied more broadly, the timeline for freezing disputed assets could lengthen at the very moment investigators want speed.
DOJ Says Binance Freeze Requests May Face Stricter Review
The US Department of Justice said prosecutors must follow a slower legal process before asking Binance to freeze accounts, potentially delaying action in fast-moving crypto cases. Binance denies any change, leaving uncertainty for users and law enforcement.