When you are pursuing stolen cryptocurrency, the timing of your actions is critical. This is a lesson being learned by the Brooklyn District Attorney’s office as they adapt to a new data-request policy at Binance. This policy necessitates that American prosecutors work through United Arab Emirates authorities to access crucial user records related to fraud cases.
The recent changes implemented by Binance in April 2025 significantly altered their process for responding to law enforcement requests. Under the revised policy, most data requests from jurisdictions outside the UAE must now pass through UAE agencies or rely on formal Mutual Legal Assistance Treaties. Although Binance states that it still responds promptly to urgent cases such as those involving child exploitation and terrorism, the overall response time for data requests has seen an increase, thereby complicating investigations.
This situation is not unique to the Brooklyn DA’s office. A memo from the US Department of Justice has raised concerns about the diminished cooperation from Binance regarding time-sensitive asset freezes and seizures. Investigators in Europe have similarly encountered difficulties. The new routing policies have made it harder to freeze assets and trackdown scammers promptly, which is crucial in preventing substantial financial losses before funds vanish.
Binance, which operates under the regulations of the Abu Dhabi Global Market, approaches this challenge within the context of local compliance. The Brooklyn District Attorney's Virtual Currency Unit, established in 2023 to specifically combat digital fraud, has already engaged in multiple significant investigations, including asset seizures and takedowns targeting fraudulent crypto activities.
As major cryptocurrency exchanges navigate the complexities associated with obtaining regulatory legitimacy in various jurisdictions such as the UAE, they find themselves increasingly constrained by local data-sharing laws. These laws can hinder the ability of foreign law enforcement to act swiftly against financial misconduct in the rapidly evolving world of digital assets.