Binance Accused of Slowing Down Crypto Investigations Amid Sanctions Scrutiny

Binance is facing criticism over its handling of cryptocurrency investigations in the US and Europe. The exchange has been accused of slowing down law enforcement requests to freeze assets, with prosecutors saying that Binance will no longer provide 'courtesy freezes' from June 8. Instead, authorities must go through a more complex process involving Mutual Legal Assistance Treaties (MLATs) with Binance or the UAE.

Binance claims it has not slowed its cooperation and has increased it year-over-year while navigating the complexities of cryptocurrency regulation. The company says prosecutors likely misread its Abu Dhabi licence rules, which require treaty channels for foreign data requests.

The controversy comes as Binance is already under scrutiny over its compliance with US sanctions against Iran. The Justice Department has opened an investigation into whether Iran used Binance to evade sanctions. Binance has pleaded guilty to violating the Bank Secrecy Act and agreed to pay $4.3 billion in fines, but it's still unclear how well the exchange is working with authorities.