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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).

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

Zuckerberg Pushes for Settlement Ahead of Antitrust Trial Zuckerberg Pushes for Settlement Ahead of Antitrust Trial

Zuckerberg Pushes for Settlement Ahead of Antitrust Trial

By  |  April 2, 2025

Meta Platforms CEO Mark Zuckerberg is actively lobbying U.S. President Donald Trump and White House officials in an effort to reach a settlement that would prevent the company from facing an upcoming antitrust trial, according to the Wall Street Journal. The trial, scheduled for April 14, could have significant consequences for Meta, including the potential forced divestiture of its acquisitions, WhatsApp and Instagram.

Per the Wall Street Journal, Meta representatives have met with Trump and his senior advisers in recent weeks to discuss the Federal Trade Commission (FTC) lawsuit, which accuses the company of engaging in anticompetitive practices. Zuckerberg himself visited the White House on Wednesday, marking his third visit during Trump’s presidency. However, the Wall Street Journal notes that some White House aides have grown frustrated with Meta’s lobbying approach, viewing it as overly aggressive.

Meta spokesperson Andy Stone commented on the company’s engagement with policymakers, stating, “We regularly meet with policymakers to discuss issues impacting competitiveness, national security, and economic growth.” Meanwhile, White House Press Secretary Karoline Leavitt declined to provide a comment, and an FTC representative did not immediately respond to inquiries.

The FTC’s lawsuit argues that Facebook, now Meta, has maintained its dominance in the social networking space through a long-term strategy of eliminating competitive threats. According to the complaint, the company has engaged in anticompetitive conduct to sustain its monopoly power. While the FTC is an independent agency, Trump has sought to increase executive oversight over such entities, requiring them to submit significant regulations for White House review.

Related: FTC Targets Meta’s Market Power, Calls Zuckerberg to Testify

A person familiar with Trump’s thinking told the Wall Street Journal that the president has not yet made a decision on whether the administration will seek a settlement with Meta. Former FTC Chairman Jon Leibowitz, who served under both the Bush and Obama administrations, commented on the unusual nature of a company approaching the White House regarding an antitrust case. “It is unusual for companies involved in big antitrust lawsuits to go to the White House, but it has happened before,” Leibowitz said. However, he added that he has never seen a White House attempt to influence the FTC’s decision-making process, emphasizing the agency’s independence in such matters.

Zuckerberg’s efforts to engage with Trump follow a history of mixed relations between the two. According to the Wall Street Journal, Meta contributed $1 million to Trump’s inaugural fund and Zuckerberg made visits to Mar-a-Lago during the presidential transition. Additionally, in January, Meta settled a lawsuit Trump had filed against the company over its suspension of his social media accounts following the January 6, 2021, attack on the U.S. Capitol. The settlement resulted in a $25 million payment, with $22 million allocated to Trump’s presidential library fund.

As the April 14 trial approaches, it remains to be seen whether Meta’s lobbying efforts will yield a favorable resolution.

Source: The Wall Street Journal