- Binance is under judicial investigation by France
- Allegations consist of money laundering, tax fraud, drug trafficking, and other criminal activities
- It’s not the first time that the cryptocurrency exchange had legal trouble
Just this Tuesday, French authorities launched a judicial investigation into Binance. The investigation includes allegations of money laundering, tax fraud, drug trafficking, and other criminal activities.
National Jurisdiction against Organized Crime (JUNALCO), said that the investigation covers the period from 2019 to 2024, involving criminal activities that took place within France and across the entire European Union.
It looks like the whole operation kicked off because of users’ complaints. Their objections alleged financial losses stemming from misleading information, accusing the platform of operating without obtaining the necessary regulatory authorizations.
Binance has yet to say anything on this matter.
Related: Binance Poll Reveals BNB’s Gains, Losses, and Market Divide
Not the First Time Binance Has Been in Hot Waters
This isn’t the only time Binance has found itself in hot waters. Over the last few years, the exchange has faced multiple legal challenges and regulatory investigations across various jurisdictions.
In the US, in March 2023, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its then CEO, Changpeng Zhao. The lawsuit alleged willful evasion of US laws and violations of derivatives regulations. It accused Binance of not putting in place adequate anti-money laundering (AML) measures and facilitating transactions for entities such as Hamas.
Then in November 2023, Binance pleaded guilty to conspiracy to violate the Bank Secrecy Act (BSA). Binance and Zhao admitted to AML failures, operating an unlicensed money transmitting business, and sanctions violations. The resolution included a $4.3 billion fine, marking one of the largest corporate settlements involving a cryptocurrency firm.
There’s more. In other legal battles, in November last year, FTX filed a lawsuit against Binance and its CEO, seeking to recover nearly $1.8 billion. The ongoing case is about a 2021 transaction where Binance sold its stakes in FTX back to the company, with allegations of fraudulent transfers.
Related: Binance CZ Addresses Memecoin Hype: No Purchases, But No Opposition Either
Binance also faced allegations in the EU. One example is in June 2023, when it announced its departure from the Dutch market after failing to secure the necessary registration with the Dutch central bank, De Nederlandsche Bank (DNB). This decision was influenced by the DNB’s €3.3 million fine imposed on Binance in April 2022 for offering services without proper authorization.
There have been several other investigations and allegations as well, and we have yet to see the ramifications of the newest one – both for Binance and the crypto world.
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