French authorities have launched a criminal investigation into Binance over alleged failures in countering money laundering, adding to the cryptocurrency exchange’s mounting legal challenges.
The Paris prosecutor’s office is examining potential breaches committed between 2019 and 2024, citing concerns that Binance may have neglected its anti-money laundering obligations. Prosecutors suspect that these lapses may have facilitated illicit financial activities, including the laundering of funds derived from drug trafficking and tax fraud.
Binance, the world’s largest cryptocurrency exchange, previously established Paris as its European hub. However, this latest probe intensifies scrutiny on the company, which has already faced regulatory challenges worldwide. In 2023, Binance pleaded guilty to violating U.S. anti-money laundering laws and agreed to a $4.3 billion settlement with American authorities. Its founder, Changpeng Zhao, served a four-month prison sentence in connection with the case. The company continues to battle separate civil charges brought by the U.S. Securities and Exchange Commission (SEC).
Responding to the French investigation, a Binance spokesperson refuted the allegations, insisting that the matter pertains to past operations and that the company has significantly improved its compliance measures in recent years. “Binance has made substantial advancements in anti-money laundering compliance, which have been recognized by authorities,” the spokesperson said.
The probe into Binance underscores the growing regulatory pressure on cryptocurrency exchanges as governments worldwide seek to tighten oversight of digital assets. French authorities have not disclosed a timeline for their investigation, but legal experts suggest the case could lead to further regulatory action against the embattled exchange.