Binance Faces Money Laundering and Fraud Investigation in France

January 28, 2025 – French authorities have launched a major investigation into Binance, the world’s largest cryptocurrency exchange, over allegations of money laundering, tax fraud, and drug trafficking. The probe focuses on Binance’s activities from 2019 to 2024 and whether the exchange violated European financial laws.

Authorities are examining whether Binance failed to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, which are required to prevent illicit transactions. The exchange is also accused of operating without proper licenses.

Binance has denied all allegations, stating that it has made significant improvements in compliance and follows global regulatory standards. The company says it is fully cooperating with authorities and is prepared to fight the charges legally.

This is not Binance’s first legal battle in France. In 2023, French investigators also looked into claims of illegal client canvassing and weak KYC policies. The current case follows a string of global legal challenges for Binance, including a massive U.S. settlement and the resignation of former CEO Changpeng Zhao after pleading guilty to financial violations.

The investigation raises concerns about Binance’s future in Europe and its ability to operate under stricter regulations. Some in the crypto community see this as “FUD” (Fear, Uncertainty, Doubt), while others believe it signals tougher enforcement against crypto platforms worldwide.

Sources:

• The Block – French Authorities Investigate Binance Over Alleged Money Laundering, Tax Fraud, Drug Trafficking

• Reuters – French Investigators Open Fraud Probe Against Binance

• BeInCrypto – French Authorities Launch Money Laundering Investigation Into Binance

• Financial Times – France deepens probe into Binance over alleged money laundering