Nikolas Sargeant
French prosecutors have launched a formal investigation into Binance, the world's largest cryptocurrency exchange, examining potential violations of anti-money laundering laws and terrorist financing regulations. The probe, announced Tuesday, focuses on allegations that Binance facilitated illegal transactions connected to drug trafficking and tax fraud across France and the European Union.
Investigation Reveals Long-Standing Concerns
A Binance spokesperson expressed strong disappointment over JUNALCO's decision to advance the case to the French judiciary, emphasizing that the allegations date back several years. The company firmly denies all accusations, citing recent recognition from major regulatory bodies including FinCEN, DOJ, and OFAC for their improved compliance measures. These authorities have acknowledged Binance's implementation of comprehensive anti-money laundering protocols and enhanced employee training programs.
Regulatory Challenges Mount Across Multiple Fronts
The investigation expands beyond money laundering concerns, examining Binance's unauthorized promotional activities in France before obtaining proper registration. This latest scrutiny follows the exchange's record $4.3 billion fine from U.S. authorities in 2023 for compliance failures and sanctions violations. The case contributed to significant leadership changes, including the departure of co-founder Changpeng Zhao (CZ) as CEO, with his replacement pledging stronger regulatory compliance measures across all operations. Binance maintains its innocence and promises to vigorously contest any charges brought against the company.
