Following this announcement, the French authorities have deepened their investigation into Binance on suspicion that a large cryptocurrency exchange broke European money laundering and terrorist financing laws.
The public prosecutor also mentioned that it had opened a judicial investigation into Binance as it was likely to have assisted in habitual money laundering, in particular drug trafficking and tax fraud. The potential offenses were committed in the region of France, but also in all countries of the European Union.
The initiative represents an expansion of a probe that began in France in 2023 over whether Binance marketed solutions to clients without regulatory approval, among other allegations. The exchange sought to draw a line under its past in late 2023 when the company was fined a record USD 4.3 billion by US officials for failing to take measures against money laundering and breaches of international sanctions. Binance fully denies the allegations and will vigorously fight any charges made against it.
The French probe relates to activities from 2019 to 2024 after customers complained about losing money through investing on the exchange because of incomplete disclosure. At the same time, prosecutors said that the company sent promotional communications to clients in France through influencers and advertising campaigns on social networks.
In 2022, France was also one of the first countries in Europe to give Binance a registered status that allowed it to market some services to French consumers and partners alongside other crypto platforms. Binance has also repeatedly clashed with the UK’s Financial Conduct Authority, which in 2023 blocked its attempts to market to British consumers. The public prosecutor mentioned that it had handed over the investigation to France’s client protection and anti-fraud agencies.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now