Cryptocurrency

Binance reroutes police requests through foreign governments, NYT says

The New York Times reports Binance's April 2025 policy sends many law-enforcement data requests through foreign governments, slowing European probes.

Binance, the world’s largest cryptocurrency exchange, quietly changed how it handles law-enforcement requests starting in April 2025, requiring officials in many countries to route certain demands through foreign governments under international treaties, The New York Times reported. Investigators told the paper the shift has made it harder to track scammers and combat money laundering.

The change arrived alongside an exodus of senior compliance staff and has stymied some European probes while raising concerns in the United States, the reporting found. Binance says it has not slowed cooperation and that the policy ensures it follows privacy laws when handling customer data, with no indication the move tied to the Trump administration’s easing of crypto regulation.

A senior European law-enforcement official said most requests have been channeled to the government of the United Arab Emirates, where Binance is regulated, dramatically slowing response times. Police from five European countries at a Netherlands conference last month said they struggled to get information except in cases involving child sexual abuse material, terrorism, or an imminent threat to life, according to The New York Times.

What the Binance policy changes for prosecutors

In the United States, law enforcement is largely exempt from routing requests abroad, but Binance has asked some state prosecutors to send theirs through other countries, hindering at least two investigations this year, according to people familiar with the cases. Alona Katz, an assistant district attorney in Brooklyn, told the Times she had generally found Binance responsive, sometimes within hours, yet could not obtain records for users based in the UAE.

Katz said speed decides outcomes in fast-moving thefts where criminals move funds in minutes. “How fast you get your records determines the outcome of your case,” she said. “It’s everything.” Manhattan District Attorney Alvin Bragg added in a statement that “for the sake of victims of crypto theft, it is important to have the timely and forthcoming cooperation from these massive, and highly profitable, cryptocurrency corporations.”

Binance chief compliance officer Noah Perlman said that “in some cross-border cases, foreign law enforcement may be directed to the appropriate formal legal process,” while arguing the company has increased cooperation, gone “far beyond” its legal obligation, and remains committed to fulfilling the requirements of its 2023 settlement with the United States.

Why regulators and investors are watching

The backdrop is delicate. Binance paid $4.3 billion in penalties after pleading guilty in 2023 to compliance failures that let criminals move money, and founder Changpeng Zhao spent four months in federal prison. Under its Justice Department plea deal, the exchange agreed to steps preventing financial crime, since funds entering Binance become untraceable unless the company turns over account data.

Late last year Binance fired or suspended compliance employees who flagged $1.7 billion they said flowed to Iranian entities, and the company disputes those findings. In December it gained a license to operate in Abu Dhabi, after which some requests flow through the Emirati government, prompting conflict-of-interest worries because the investment firm MGX is funded by Abu Dhabi royals.

This spring a compliance official told the Justice Department that starting June 8 the treaty requirement would widen to more American requests, but Binance’s top executives did not move forward with that plan. The scrutiny lands as crypto moves deeper into mainstream finance, from the Bitcoin ETF to Circle IBM blockchain work.

FAQ

Q1. When did Binance change its law-enforcement policy?

A1. Binance enacted the policy in April 2025, requiring certain law-enforcement requests to be routed through foreign governments under international treaties.

Q2. Which U.S. prosecutors commented on the change?

A2. Brooklyn assistant district attorney Alona Katz and Manhattan district attorney Alvin Bragg both spoke to The New York Times, with Katz noting record speed decides case outcomes and Bragg stressing timely cooperation for theft victims.

Q3. Did Binance extend the rule to more U.S. requests?

A3. A compliance official told the Justice Department a June 8 expansion was planned, but Binance’s top executives did not move forward with that wider plan, the Times reported.