Key Takeaways
- The investigation reportedly began in 2023, led by France’s financial judicial investigation service, and has now been referred to the judiciary by JUNALCO
- Binance has denied the allegations
Leading crypto exchange, Binance is currently facing a probe by French authorities on allegations of money laundering, tax fraud, and other illicit activities spanning from 2019 to 2024. As per a Reuters report the probe, initiated by the economic and financial crime division of the Paris Public Prosecutor’s Office, includes allegations of money laundering tied to drug trafficking and user complaints about misinformation and unlicensed trading practices.
The investigation reportedly began in 2023, led by France’s financial judicial investigation service, and has now been referred to the judiciary by JUNALCO, a specialized division of the Paris Public Prosecutor’s Office.
As per media reports, Binance confirmed the investigation, the exchange firmly denies the allegations. “While we do not usually comment on legal proceedings as a matter of policy, Binance fully denies the allegations and will vigorously fight any charges made against it,” the exchange stated.
The heightened scrutiny comes as other crypto exchanges also face regulatory hurdles in France. Bybit, a competing exchange, announced last month that it would cease operations in the country by January, citing increased regulatory pressure
Binance’s legal troubles extend beyond Europe. In the United States, the exchange is grappling with a civil suit from the Securities and Exchange Commission (SEC) filed in 2023. Although reports are suggesting the SEC’s stance could shift under the new presidential administration, the lawsuit remains active.
Former Binance CEO Changpeng “CZ” Zhao, a key figure in the exchange’s rise to prominence, served four months in federal prison in 2024 after pleading guilty to a felony charge as part of a deal with U.S. authorities. While Zhao has stepped back from his leadership role, Binance recently announced that he would remain involved with its technology incubator, rebranded as YZi Labs.
Elsewhere, Binance has faced challenges from regulators in other jurisdictions. In December, the Australian Securities and Investments Commission (ASIC) initiated legal action against Binance’s derivatives arm in the country. The regulator alleged that Binance had misclassified over 500 retail clients as wholesale investors between 2022 and 2023, leading to inadequate consumer protections.
