French authorities have launched a judicial investigation into money laundering and tax fraud involving the cryptocurrency platform Binance. The probe also examines money laundering linked to drug trafficking.
The alleged offenses occurred in France and other European countries from 2019 to 2024. French justice claims Binance operated without required approvals and failed to properly monitor customer identities and suspicious transactions, potentially facilitating money laundering related to drug trafficking and tax fraud.
The preliminary investigation began in 2022 after platform users complained about financial losses due to misinformation, with Binance allegedly using influencers and social media advertisements unlawfully. A Binance spokesperson told Reuters that the company strongly denies the allegations and will vigorously contest any charges, noting that the issue is years old.
Binance claims it has since improved its anti-money laundering measures. Previously, in the United States, Binance faced accusations of various violations, including unregistered securities trading, leading to its founder Changpeng Zhao serving a four-month prison sentence and paying $4.3 billion in damages.
In the Netherlands, Binance ceased operations in July 2023 after receiving a substantial fine from the Dutch central bank for offering crypto services without a license. Investigations into Binance are ongoing in several other countries.
The company is headquartered in the Cayman Islands.
Source: NOS