French Investigators Open Fraud Probe Into Binance
Paris, Jan 28, 2025 – French authorities have launched a judicial investigation into Binance, the world’s largest cryptocurrency exchange, over allegations of money laundering, tax fraud, and other charges. The Paris public prosecutor’s office (JUNALCO) confirmed the probe on Tuesday, revealing that it also involves money laundering linked to drug trafficking. The investigation covers alleged offences committed between 2019 and 2024, both in France and across the European Union. Binance has denied the accusations, describing them as outdated and pledging to vigorously contest any charges.
The inquiry began after complaints from users who claimed they lost money due to misinformation provided by Binance. They also alleged that the platform operated without proper regulatory approval. Binance, in a statement, said it had significantly improved its compliance protocols, including stricter anti-money laundering (AML) and Know Your Customer (KYC) measures.
This is not the first time Binance has faced scrutiny. In 2023, French prosecutors launched a preliminary investigation into illegal client canvassing and aggravated money laundering. Globally, Binance has been embroiled in legal battles, including a $4.3 billion penalty in the U.S. after its founder, Changpeng Zhao, admitted to violating anti-money laundering laws. In recent months, Australia’s regulators filed a lawsuit against Binance’s derivatives arm, and the U.S. Supreme Court allowed a case involving unregistered token sales to proceed.
Regulatory bodies like the Financial Action Task Force (FATF) continue to warn about cryptocurrencies becoming safe havens for illicit activities, including terrorist financing. The scrutiny comes as the crypto industry recovers from the 2022 crisis that exposed widespread fraud and led to massive investor losses.
The news has weighed on Binance’s native token, BNB, which fell 2.23% in trading. Despite the ongoing challenges, cryptocurrencies have seen a resurgence in 2024, supported by the pro-crypto policies of the U.S. administration.
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