The world’s largest cryptocurrency exchange Binance has again come under scrutiny by financial authorities. French investigators launched a fraud probe against the company. No wonder, its clients are on edge.
According to Reuters, the platform is accused of several crimes, including money laundering, tax fraud, illegal drug trafficking, and other illegal activities.
The Department for the Fight Against Economic and Financial Crimes of the Paris Prosecutor’s Office (JUNALCO) reported that the current investigation is related to money laundering and the illegal drug trade. It covers the period from 2019 to 2024, including crimes committed in France, as well as in all European Union countries, the agency pointed out. Experts suspect the exchange platform was conducting business without the necessary licenses.
According to statements from JUNALCO officials, Binance clients previously complained about losing money after investing through the platform. Market participants claim they were provided with incorrect information. Currently, Binance is the only defendant in the case. The company potentially faces a fine of $10 billion.
However, Binance's management disagrees with these accusations. According to a company spokesperson, they are "deeply disappointed" that JUNALCO has referred the case to the French authorities for further investigation after several years of operation in France. Binance fully denies the charges and intends to fight any allegations brought against it, the company stated.
Earlier, it was reported that the French branch of Binance has been under preliminary investigation since February 2022. The company is accused of illegally providing cryptocurrency services and failing to meet anti-money laundering obligations.
Interestingly, Binance received a digital asset services provider license from the French Financial Markets Supervisory Authority (AMF) in May 2022. This document was approved by the Prudential Control and Resolution Authority (ACPR).
