France Initiates Investigation into Binance, Reports Reuters
French law enforcement has launched a judicial investigation into the cryptocurrency exchange Binance, according to Reuters.
The platform is accused of money laundering, tax fraud, illegal drug trafficking, and other criminal activities, the publication reports.
The Paris Prosecutor’s Office’s Department for Combating Economic and Financial Crimes (JUNALCO) stated that the investigation includes money laundering related to illegal drug trafficking.
“It examines the period from 2019 to 2024, including crimes committed in France and throughout the European Union,” the agency reported.
According to the prosecutor’s office, Binance clients complained of allegedly losing money after investing through the platform due to incorrect information provided to them. They also claimed that the exchange conducted trading without obtaining necessary permits.
A Binance representative expressed “deep disappointment” to ForkLog that JUNALCO referred the case to French judicial authorities for further investigation after several years.
“Binance completely denies the allegations and will vigorously fight any charges brought against it,” the spokesperson added.
He also emphasized that their AML/KYC checks comply with FATF standards and are implemented company-wide.
Previously, media reported that since February 2022, Binance’s French branch has been under preliminary investigation for allegedly providing illegal cryptocurrency services and failing to meet anti-money laundering obligations.
At that time, Binance CEO Changpeng Zhao urged to “ignore FUD and fake news.” According to him, unannounced inspections of regulated businesses are “the norm for banks, and now for cryptocurrencies” in France.
In May 2022, Binance received a digital asset service provider license from the French Financial Markets Authority (AMF) with the consent of the Prudential Control and Resolution Authority (ACPR).
Meanwhile, Nigerian authorities accuse Binance Holdings Limited of money laundering and currency speculation amounting to up to $34.4 million. In a separate case, the company is charged with tax evasion.
Until October 2024, the platform’s top manager Tigran Gambaryan was also involved in this case, but the Nigerian government dropped all charges against him. Another employee of the exchange, Nadim Anjarwalla, managed to leave the country secretly.
Thus, Binance remains the sole defendant in the case. The company potentially faces a fine of $10 billion.
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