French authorities have initiated a judicial investigation into cryptocurrency exchange Binance over allegations of money laundering and tax fraud, reported Reuters.
The Paris public prosecutor’s office’s economic and financial crime section (JUNALCO) is probing activities from 2019 to 2024, including potential offences across the European Union.
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JUNALCO has confirmed that the investigation is focused on money laundering linked to drug trafficking.
The scope of the probe extends to offences purportedly committed within France and throughout the EU.
The French investigation was spurred by user complaints alleging financial losses due to misinformation on the platform and Binance’s operation without the necessary regulatory approvals.
In June 2023, Binance came under preliminary investigation by the Paris prosecutor’s office for illegal canvassing of clients and “aggravated money-laundering.”
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By GlobalDataHowever, the crypto platform has refuted the charges.
By November last year, the company had increased its compliance team headcount to 645 full-timers, as part of its “intensified commitment to regulatory adherence” and “ongoing transformation” since its settlement with the US government in 2023.”
A Binance spokesperson told Cointelegraph: “Binance is deeply disappointed to learn that JUNALCO, a Paris division of the French Public Prosecutor’s Office, has taken the decision to refer this matter, which is several years old, to the French judiciary for further investigation.”
Binance has faced regulatory challenges in several countries between 2023 and 2024, including Australia, Belgium, Canada, India, Nigeria, and the US.
In the US, Binance settled with the government for $4.3bn over accusations of violating AML laws and operating without registration.
US prosecutors criticised Binance for its lax approach to illegal activities, including failing to report over 100,000 suspicious transactions.
This month, the US Supreme Court allowed a lawsuit against Binance involving investors who claim the exchange sold unregistered tokens that subsequently plummeted in value.
Additionally, in last month, Australia’s corporate watchdog sued Binance’s local derivatives business for allegedly misclassifying retail customers as wholesale clients, depriving them of consumer protections.
