Authorities in France have reportedly launched an investigation into cryptocurrency exchange Binance over allegations of money laundering and tax fraud.
According to a Jan. 28 Reuters report, the economic and financial crime division of the Paris Public Prosecutor’s Office said it had opened a probe into the crypto exchange’s activities between 2019 and 2024 over money laundering allegedly connected to drug trafficking. Binance users also reportedly said the exchange incorrectly communicated information to them, resulting in investing losses.
Earlier reports suggested that French authorities had been investigating Binance’s local arm since at least 2022 over allegations of money laundering and other illicit activities. Cointelegraph reached out to Binance for comment but had not received a response at the time of publication.
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French authorities seem to have intensified regulatory scrutiny for crypto service providers but continue to authorize companies to operate in the country under appropriate licensing arrangements. The reported French probe into Binance came more than 30 days after crypto exchange Bybit announced it planned to halt operations in the country by January, citing regulations.
Binance still faces lawsuits, probes internationally
In the US, Binance is grappling with various legal challenges. The Securities and Exchange Commission (SEC) continues to pursue a civil lawsuit against the exchange, filed in 2023, despite speculation that the regulator’s approach could shift under a new presidential administration.
Former Binance CEO Changpeng “CZ” Zhao served four months in federal prison in 2024 after pleading guilty to a felony charge as part of a deal with US authorities. Though Zhao has largely stepped back from his position at the exchange, Binance said on Jan. 23 that the former CEO would “take an active role” with its technology incubator, recently rebranded to YZi Labs.
In December, the Australian Securities and Investments Commission took legal action against Binance’s local derivatives arm, alleging it did not provide appropriate protection for consumers. The regulator alleged that the platform misclassified more than 500 retail clients as wholesale investors between 2022 and 2023.
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