French Authorities Investigate Binance for Money Laundering and Tax Fraud
French officials have launched an investigation into Binance over money laundering and tax fraud allegations, according to Reuters.
The Paris public prosecutor’s office, through its economic crime unit (JUNALCO), is looking into Binance’s activities from 2019 to 2024. The probe focuses on possible financial crimes within France and across the European Union.
JUNALCO confirmed that it is investigating Binance for money laundering linked to drug trafficking. Officials began the probe after users complained about financial losses and misinformation on the platform. Authorities also noted that Binance operated in France without proper regulatory approval.
In June 2023, French prosecutors started looking into Binance for illegally soliciting clients and laundering money. However, Binance denied the accusations.
By November 2023, Binance increased its compliance team to 645 employees. The company said this move was part of its efforts to follow regulations and improve its operations after settling with the US government.
A Binance spokesperson told Cointelegraph that the company was “disappointed” with JUNALCO’s decision to take the case to the judiciary.
Between 2023 and 2024, Binance faced regulatory issues in several countries, including the US, Canada, India, Australia, Belgium, and Nigeria.
In the US, Binance settled a case for $4.3 billion after being accused of violating anti-money laundering laws and operating without registration. US authorities also criticized Binance for failing to report over 100,000 suspicious transactions.
This month, the US Supreme Court allowed investors to sue Binance for selling unregistered tokens that later lost value.
Last month, Australia’s financial regulator sued Binance’s local derivatives business. The agency claimed Binance misclassified retail traders as wholesale clients, which denied them consumer protections.
