Image Credit: Binance.com
Two Binance employees were detained in the United Arab Emirates in recent weeks amid police inquiries into possible financial crimes involving the crypto exchange. The employees were stopped at airports in the Emirates, although the exact subject of the authorities’ investigation has not been publicly disclosed.
Binance said that a few employees had been asked to provide statements as part of what the company described as routine inquiries. The exchange said the questions concerned third-party fund flows through a Binance client money account.
Binance Says Employees Were Not Investigation Targets
Binance said the employees themselves were not targets of the inquiry and have since been cleared and released. The company did not identify the employees or provide further details about the third-party transactions being examined. The exchange added that it is working with Dubai Police and authorities in other Emirates to establish coordination procedures. Binance said:
“Cryptocurrency and the mechanics of institutional client money accounts remain emerging concepts in many jurisdictions.”
Scope of UAE Inquiry Remains Unclear
The detentions after speaking with four people familiar with the matter. Two of those sources said the employees had been stopped at airports, but the report did not establish what specific potential financial crimes UAE authorities were investigating.
Binance said the questioning concerned third-party fund flows through a client money account and that the employees were not targets of the inquiry. No charges against the two employees were reported, and both were released after providing information to authorities.
Binance Maintains Operations in UAE
The inquiry comes as the UAE remains an important operating market for Binance. The exchange secured regulatory approval to operate in Dubai in 2022 and has maintained operations in the UAE since then.
Binance has faced regulatory and legal scrutiny in other jurisdictions in recent years. The latest UAE inquiry remains limited in publicly available detail, with authorities yet to disclose the specific transactions or parties under examination.
