Binance Employees Cleared After UAE Detention Over Third-Party Fund Flows

Two employees of Binance were detained and questioned by UAE authorities over third-party fund flows through a client money account, but have since been cleared and released. The incident occurred in recent weeks and was first reported by The New York Times.

Binance has stated that the employees provided statements as part of a 'routine inquiry' and were not subjects of the investigation. The company claims to be cooperating with Dubai Police and authorities in other Emirates, and is working on establishing clearer procedures for responding to similar inquiries.

The UAE's Virtual Assets Regulatory Authority lists Binance FZE as an active licensed provider in its public registry, covering exchange, broker-dealer, lending, borrowing, management, and investment services. The license also permits the company to serve retail, qualified, and institutional investors, with derivatives and margin trading subject to additional customer restrictions.

Binance has been expanding its regulated presence across Abu Dhabi through separately supervised entities, and sees the UAE as a key part of its regulatory strategy. However, the exchange has not disclosed details on the client account, third parties, or transaction values involved in the inquiry.