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French Prosecutors Open Investigation into Binance

By  |  January 28, 2025

French authorities have launched a judicial investigation into Binance, the world’s largest cryptocurrency exchange, on charges of money laundering, tax fraud, and related offenses. The investigation, which focuses on potential connections between money laundering and drug trafficking, spans a period from 2019 to 2024, according to a statement from the economic and financial crime division of the Paris public prosecutor’s office (JUNALCO).

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    The probe, which will cover alleged crimes committed in France and across the European Union, follows complaints from users who claim to have suffered financial losses after investing on the Binance platform. According to the prosecutor’s office, the complaints include accusations that Binance provided inaccurate information to users and operated without the required regulatory approvals.

    A spokesperson for Binance denied the allegations, stating in an emailed response, “Binance fully denies the allegations and will vigorously fight any charges made against it.” The spokesperson also highlighted that the investigation pertains to matters dating back several years.

    Related: FTX Sues Binance Over Alleged $1.8 Billion Fraudulent Transfers

    Binance has faced previous legal challenges, including a significant settlement in the United States. Last year, the company’s founder and former CEO, Changpeng Zhao, was sentenced to four months in prison after pleading guilty to violating U.S. money laundering laws. The exchange also agreed to pay a hefty $4.3 billion penalty. U.S. authorities had accused Binance of fostering a “Wild West” environment, allegedly allowing criminals to exploit the platform and failing to report over 100,000 suspicious transactions involving designated terrorist groups.

    In response to the ongoing scrutiny, Binance emphasized its efforts to improve its compliance practices. “Binance has made substantial advancements in anti-money laundering (AML) and Know-Your-Customer (KYC) procedures,” the spokesperson noted. “We’ve adopted global regulatory standards and invested in enhanced employee training.”

    The investigation in France follows an earlier preliminary probe initiated in June 2023, when Paris authorities investigated Binance over allegations of illegal client solicitation and aggravated money laundering. The current judicial inquiry marks a significant escalation in the scrutiny of the cryptocurrency exchange’s operations in Europe.

    Source: Reuters