French prosecutors have escalated their investigation into Binance, alleging the crypto giant facilitated habitual money laundering tied to drug trafficking and tax fraud. The probe, initially launched in 2023 over regulatory violations, now extends to alleged illicit activities spanning the entire EU. Binance denies the accusations, calling them outdated.
Key Points:
- Money Laundering Allegations: French authorities suspect Binance enabled money laundering linked to drug trafficking and tax fraud across the EU.
- Expanded Investigation: This judicial probe builds on a 2023 inquiry into Binance’s unlicensed marketing and regulatory breaches in France.
- Historical Context: Binance was fined a record $4.3 billion by U.S. regulators in 2023 for AML and sanctions violations. Founder Changpeng Zhao (CZ) resigned and served four months in prison before handing the reins to Richard Teng.
- French Authorities’ Focus: Prosecutors claim Binance promoted its services illegally in France from 2019 to 2024, using influencers and advertising before obtaining regulatory approval.
- Regulatory Contradictions: France was one of the first EU nations to grant Binance official registration in 2022, despite global scrutiny over the exchange’s compliance practices.
Short Narrative:
Binance is back in the regulatory crosshairs as French prosecutors widen their investigation into suspected large-scale money laundering across the EU. The crypto giant, already fined billions in the U.S., is accused of enabling illicit financial flows linked to tax fraud and drug trafficking. Prosecutors also cite illegal marketing tactics in France before Binance’s regulatory approval in 2022. The irony? France previously welcomed Binance with open arms, with President Macron even meeting CZ in 2021 to position Paris as a European crypto hub.
Now, with regulators taking a tougher stance, Binance faces mounting legal challenges. Despite the probe, Binance’s services remain accessible in France—at least for now.
Actionable Insight:
Binance’s legal troubles highlight the growing enforcement risks facing crypto platforms operating in Europe. Market participants should closely watch how regulatory shifts affect Binance’s standing and whether other exchanges face similar scrutiny.
Call for Information:
Do you have insights into Binance’s operations or crypto compliance failures? Submit tips anonymously via Whistle42.com and help uncover the truth behind the industry’s murky dealings!
