Two Binance employees were detained in the United Arab Emirates in recent weeks as authorities examined potential financial crimes involving activity on the cryptocurrency exchange, according to a New York Times report cited by Reuters.
The employees were stopped at airports in the Emirates, according to people familiar with the matter. The precise transactions or suspected offenses being investigated have not been publicly disclosed by UAE authorities.
Binance confirmed that a small number of employees had been asked to provide statements to UAE authorities, but characterized the matter as routine inquiries concerning third-party fund flows passing through a Binance client money account.
The exchange said the employees were not targets of the investigation and had been “promptly cleared and released.” No charges against the employees have been publicly announced.
The distinction is significant because the original report concerned an investigation into potential financial misconduct involving the platform, rather than allegations that the detained employees personally committed financial crimes.
One Employee Was Reportedly Held Overnight
Details reported separately indicate that at least one of the employees experienced more than routine questioning.
A mid-level Binance employee was reportedly stopped at Sharjah International Airport earlier in August, taken to a police station and held overnight. Another Binance official associated with its Dubai operation was questioned by authorities in July.
The exact third-party fund flows under examination remain unknown. UAE authorities have not publicly identified the owners or recipients of the funds, disclosed the amounts involved or announced a formal case against Binance arising from the inquiries.
Binance said cryptocurrency transactions and the mechanics of institutional client money accounts remain relatively new concepts in many jurisdictions. The company said it is working with Dubai Police and authorities across other Emirates to establish clearer coordination procedures.
Client money accounts are generally designed to segregate funds held on behalf of customers from a company’s own operating capital. Transactions through such accounts can involve multiple institutions and counterparties, and the presence of third-party flows does not itself establish criminal conduct.
UAE Has Become a Critical Hub for Binance
The investigation is notable because the UAE has become one of Binance’s most important regulatory and commercial bases.
Binance established a significant presence in Dubai after receiving regulatory authorization there, and its relationship with the Emirates deepened further when Abu Dhabi-backed investment firm MGX announced a $2 billion investment in the exchange in March 2025.
The company has since expanded its regulatory footprint in Abu Dhabi, strengthening the UAE’s role in its global operations.
The detentions nevertheless show that an accommodating regulatory environment does not eliminate law-enforcement scrutiny of cryptocurrency transactions. UAE authorities have increasingly emphasized anti-money-laundering controls as Dubai and Abu Dhabi seek to establish themselves as major regulated digital-asset centers.
Binance also enters the episode with a history of compliance disputes in other jurisdictions. In 2023, the company agreed to pay more than $4 billion to resolve U.S. investigations concerning anti-money-laundering, sanctions and money-transmission violations. Former CEO Changpeng Zhao separately pleaded guilty to failing to maintain an effective anti-money-laundering program.
More recently, Binance and a former executive faced money-laundering allegations in Nigeria, which they denied.
There is currently no indication that the latest UAE inquiry is connected to those earlier cases.
For now, the most important unresolved issue is the underlying movement of funds rather than the employees themselves. Binance says its personnel were only providing information and have been cleared, while UAE authorities have yet to publicly explain what transactions triggered the investigation or whether any company, customer or third party remains under scrutiny.