Binance's UAE Routing System Slows Down Crypto Investigations

Binance has come under fire for its new law enforcement routing system, which directs many foreign requests through government channels in the UAE or Mutual Legal Assistance Treaty requests. The move is a procedural change that crypto investigators say gives scammers more time to cover their tracks.

The delay can be crucial in crypto cases, where money moves quickly and scammers can drain accounts before investigators even assemble paperwork. Binance disputes this framing, saying its cooperation with law enforcement has improved year over year and the routing reflects obligations tied to its authorization in the Abu Dhabi Global Market.

However, European investigators from five countries told The New York Times they had run into the same problem, where some requests once went directly to Binance's compliance operation now get pushed toward the UAE process or formal treaty channels. Binance still handles urgent cases involving child sexual abuse material, terrorism, or an imminent threat to life more quickly.

The move is seen as a jurisdictional shield by critics, who argue that it slows down investigations and gives scammers a longer runway. The issue also lands on top of a credibility problem for Binance, which pleaded guilty to violations tied to the Bank Secrecy Act in 2023 and agreed to pay $4.3 billion in penalties.