Binance Under French Investigation for Alleged Money Laundering

Binance Under French Investigation for Alleged Money Laundering

The Paris Public Prosecutor’s Office has reportedly launched an investigation into cryptocurrency exchange Binance, scrutinizing its activities between 2019 and 2024 over allegations of money laundering and tax fraud. The probe is being conducted by the economic and financial crime division, with suspicions that some of the funds may be connected to drug trafficking. Additionally, Binance users have alleged that misleading information provided by the exchange led to significant investment losses.

According to earlier reports, French authorities began investigating Binance’s local operations as early as 2022, focusing on potential money laundering and other illicit activities. The exchange has yet to respond to the latest developments, despite repeated inquiries from media outlets.

The French probe into Binance comes amid heightened scrutiny of cryptocurrency platforms by regulators worldwide. In December 2024, crypto exchange Bybit announced plans to halt operations in France, citing regulatory pressures. Despite these challenges, France continues to authorize crypto companies to operate under appropriate licensing agreements, maintaining a balance between innovation and compliance.

Binance’s legal troubles extend beyond France. In the United States, the Securities and Exchange Commission (SEC) is pursuing a civil lawsuit against the exchange, initiated in 2023. Reports suggest that the case could see a shift in direction under the new U.S. presidential administration.

In 2024, former Binance CEO Changpeng “CZ” Zhao served four months in federal prison after pleading guilty to a felony charge in the U.S. as part of a settlement deal. Although Zhao has stepped down from his leadership role, Binance recently announced that he would “take an active role” in its rebranded technology incubator, YZi Labs.

Additionally, the Australian Securities and Investments Commission (ASIC) filed legal action against Binance’s derivatives arm in December, alleging it had misclassified over 500 retail clients as wholesale investors between 2022 and 2023. The ASIC’s case highlights global concerns about consumer protection within the crypto industry.

The investigation into Binance underscores the complexities of regulating the rapidly evolving cryptocurrency sector. While crypto ATMs and exchanges provide significant accessibility and innovation, they also raise concerns about potential misuse for financial crimes. French authorities are working to navigate this landscape by enforcing stringent regulations while fostering the growth of blockchain technology.

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