France Investigates Binance for Money Laundering, Fraud Allegations

French authorities have reportedly opened a judicial investigation into cryptocurrency exchange Binance, following allegations of money laundering and tax fraud, which the company has denied.

According to a Reuters report, the Paris Public Prosecutor’s Office has initiated an investigation by its economic and financial crime division into cryptocurrency exchanges operating between 2019 and 2024. The probe focuses on alleged money laundering activities linked to drug trafficking.

French regulators have ramped up scrutiny of cryptocurrency service providers while still allowing companies to operate under proper licenses. The investigation into Binance comes just over a month after Bybit announced its decision to cease operations in France by January, citing regulatory concerns.

“Binance fully denies the allegations and will vigorously fight any charges made against it,” a spokesperson for the company said in an emailed statement, emphasizing that the issue was “several years old.”

Changpeng Zhao, the founder and former CEO of Binance, was sentenced to four months in prison last year after admitting to violating U.S. anti-money laundering laws. The company also reached a settlement, agreeing to pay a $4.3 billion penalty as part of the resolution.

U.S. prosecutors accused Binance of operating a “Wild West” approach that allowed criminal activity to flourish. They alleged the exchange failed to report over 100,000 suspicious transactions, including those linked to designated terrorist groups.

Binance’s Past Cases

The investigation by French authorities was triggered by complaints from users who claimed they lost money after investing on the platform. Users accused the exchange of providing misleading information that resulted in their financial losses. They also claimed the platform operated without the required regulatory approvals.

In June 2023, the Paris prosecutor’s office launched a preliminary investigation into Binance over accusations of illegal client solicitation and aggravated money laundering. At the time, Zhao dismissed the reports as “FUD” (Fear, Uncertainty, and Doubt), a term often used in the crypto community to downplay negative news.

In addition to the French investigation, Binance is also contending with multiple lawsuits and ongoing regulatory inquiries in several other countries, further escalating the legal challenges faced by the global cryptocurrency exchange.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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