Just In: Binance Faces French Probe for Money Laundering, Tax Fraud, & More

French investigators have launched a judicial probe into Binance Binance - binance@miceneurol.com Centralised ExchangeCryptocurrenciesTrading AppCryptocurrency investment the major cryptocurrency platform, on charges including money laundering, tax fraud, and drug trafficking, according to Reuters.

The financial crime division of the Paris public prosecutor’s office (JUNALCO) confirmed that the investigation is focused on money laundering tied to drug trafficking. The probe covers the period from 2019 to 2024, focusing on potential offenses in both France and the broader European Union.

The investigation follows complaints from users who claim they lost money due to misleading information and allege that Binance was operating without the necessary legal approvals.

Binance’s Legal Troubles in France

The investigation into Binance started in 2023, when French authorities accused the platform of offering illegal crypto services and failing to meet anti-money laundering standards. In response to growing pressure from regulators, Binance was forced to exit the French market in 2024.

Binance Faces Global Legal Challenges

The French investigation is just one part of Binance’s legal troubles worldwide. This month, the U.S. Supreme Court allowed a lawsuit to move forward against Binance and its founder Changpeng Zhao Changpeng Zhao Changpeng Zhao is a well-known Chinese Canadian entrepreneur who is also known to be the founder of Binance, established in 2017 alongside Yi He, It is the biggest cryptocurrency exchange in the world based on trading sector and volume. Before this, CZ served as the Head of Development at Blockchain.info and later worked at OKCoin as the Chief Technology Officer. Under CZ’s leadership, Binance launched an ICO( initial coin offering ) that was able to successfully raise $15 million and rapidly became the largest exchange within a few months. Changpeng has always been an advocate for decentralized finance and blockchain Technology. Changpeng is a top blockchain speaker to is actively initiating contributions in the development of the rapidly growing crypto and blockchain space, where he recently attended the Token2049 Singapore event to share his insights on the tech.   Personal Details:Born: 1977Organization: BinanceLocation: UAEEducation: Changpeng graduated with a BSc. A degree in computer science from McGill University  Experience: CEO of Binance from Jul 2017 to Nov 2023 Founder- Bijie Tech from Sep 2015 to Jul 2017 Head of Development - Blockchain from 2013 to 2014 Partner - Fusion Systems from Nov 2005 to Dec 2013 Head of Trade Book Futures Development- Bloomberg from 2001 to 2005   EntrepreneurInvestorChief Executive Officer The lawsuit involves investors who claim that Binance illegally sold unregistered tokens.

Additionally, in December, Australia’s corporate watchdog filed a lawsuit against Binance’s local derivatives business, accusing the exchange of misclassifying retail customers as wholesale clients and denying them consumer protections.

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Growing Global Scrutiny of Crypto Platforms

This move by the French regulators highlights the growing scrutiny that cryptocurrency platforms are facing from regulatory bodies worldwide. This is part of a larger trend where global regulators are ramping up their efforts to enforce stricter compliance with financial laws and crack down on illicit activities that can be facilitated through crypto platforms.

Binance (Still) Stands Strong

Despite these legal challenges, Binance remains one of the biggest players in the crypto space, offering a wide range of services such as trading, staking, and derivatives. While the exchange has made adjustments to comply with local laws, this latest investigation could bring more pressure from regulators, potentially affecting its operations even further.

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