Binance faces UAE scrutiny over account used to hold customer funds

Authorities in Dubai and Sharjah questioned staffers during a probe into third-party fund flows, while Binance says no employees were targets

Authorities in Dubai and Sharjah recently questioned Binance staffers as part of a probe into a bank account the exchange uses to hold customer money, according to people familiar with the matter and a Binance statement.

Some staffers were signatories on the account, which authorities received complaints about. Binance said it is working with Dubai Police and other emirate authorities to coordinate procedures.

A Binance spokesperson said a small number of employees provided standard statements about third-party fund flows, but were never targets or subjects of the inquiries and were promptly cleared and released. Authorities in Dubai and Sharjah did not immediately comment.

The UAE is a key base for Binance, providing regulatory licenses and investment and serving as a home for co-founder Changpeng Zhao. The inquiries add scrutiny as the exchange rebuilds after a $4.3 billion US criminal settlement in 2023.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Some staffers were signatories on the account, which authorities received complaints about. Binance said it is working with Dubai Police and other emirate authorities to coordinate procedures.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.