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Binance Employees Detained in UAE, Exchange Says Staff Were Cleared and Released

Binance Employees Detained in UAE, Exchange Says Staff Were Cleared and Released

Binance says employees questioned by UAE authorities were not subjects of the investigation.

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 21 August 2026 16:07 IST

Binance Employees Detained in UAE, Exchange Says Staff Were Cleared and Released

Photo Credit: Unsplash/Michael Förtsch

Binance says it is working with UAE authorities to establish clearer procedures

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Highlights

Binance says employees were not targets of the investigation
The exchange is cooperating with UAE authorities
Binance FZE remains an active licensed service provider in Dubai

In the past few weeks, two individuals working for the cryptocurrency exchange Binance were arrested in the United Arab Emirates (UAE), reports The New York Times. It was also stated that the arrests were made during an ongoing investigation into financial misconduct linked to the Binance exchange. It was reported that a mid-level employee was arrested in Sharjah and kept overnight in the police station. Additionally, another official from the Dubai-based unit of Binance was interrogated in a police station in July.

Binance Says Inquiry Focused on Third-Party Funding Flows

Binance spokesperson told The New York Times in their report that only "a small number of employees" were approached by UAE authorities and required to give their usual statement about third-party funding flows. The company noted that its employees were not being targeted by any of these investigations, and all the people who gave statements were "promptly cleared and released." This was an investigation of third-party cash flow going through a Binance client cash account. The employees in question were not the subjects of this investigation.

Crypto Regulation Discussion

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Most client money accounts distinguish between funds of the customer and working capital of the business. Such accounts may include banks, payment service providers, companies, as well as various intermediaries. The involvement of third-party payments is not proof of any illegal actions. Exchange stated that it was cooperating with Dubai Police as well as other Emirates authorities. It further stated that it was trying to develop clear procedures for handling such queries in the future.

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Binance claimed that there are authorities who are unfamiliar with cryptocurrency transactions and financial dealings with institutional clients. It called its talks with UAE officials an attempt to develop “clear, appropriate coordination procedures.” However, the reports did not specify which client accounts, third parties, and transaction amounts were involved in the transaction. It did not mention for how many days the employees were detained or whether there were any travel restrictions placed on them.

This investigation has not led to any announcement regarding the change of Binance's regulatory position in Dubai. The Virtual Assets Regulatory Authority maintains Binance FZE as an active licensed service provider in its registry. The license includes transactions, brokerage-dealing, borrowing, lending, management, and investment activities. It also allows the firm to cater to retail, qualified, and institutional investors. There are also special conditions for derivatives trading and margin operations.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: crypto regulation, Binance, VARA Licence

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More