Binance Is Being Investigated In France For Money Laundering

French prosecutors have initiated a formal investigation into Binance, accusing the world’s largest cryptocurrency exchange of involvement in money laundering, tax fraud, and connections to drug trafficking operations.

The inquiry spans activity between 2019 and 2024 and focuses on offenses allegedly committed in France and across the European Union. According to the prosecutor’s office, the investigation began following user complaints.

These individuals claimed to have suffered financial losses after receiving misleading information from the platform. Additionally, Binance is accused of operating without proper regulatory approval during certain periods.

Binance, which has been under regulatory scrutiny globally, faces multiple lawsuits and investigations across several countries.

Allegations of pre-registration misconduct in France

Binance received official regulatory approval in France in May 2022, becoming a registered Digital Asset Service Provider (DASP) under the supervision of the Autorité des Marchés Financiers (AMF).

Despite this, French regulators now allege that Binance failed to meet its obligations as a DASP. The platform is also accused of running advertisements through social media influencers prior to obtaining legal registration, which violates French advertising laws.

Broader legal challenges for Binance

The investigation in France adds to Binance’s mounting legal troubles worldwide. In 2023, Binance and its founder, Changpeng Zhao (CZ), faced a high-profile case in the United States. That case ended with Binance paying a $4billion penalty and CZ resigning as CEO.

However, regulatory pressure on Binance has only grown since then. The US Supreme Court recently allowed a class-action lawsuit against the exchange to proceed. Plaintiffs allege that Binance sold unregistered securities to investors.

In the United Kingdom, a separate legal battle involves allegations from Amrita Srivastava, a former senior employee. She claims she was fired after reporting an internal corruption incident.

According to the lawsuit, a colleague solicited a bribe from a customer in exchange for preferential treatment. The case, filed in November 2024, is ongoing and has further complicated Binance’s legal standing.

Global crackdown on centralized crypto exchanges

The regulatory environment for centralized exchanges continues to tighten. KuCoin, another major exchange, recently admitted to operating illegally as a money-transmitting business in the United States. Its founders, Chun Gan and Ke Tang, agreed to pay nearly $300million in fines to avoid criminal prosecution.

While French authorities have yet to release additional details about their investigation into Binance, the growing list of allegations presents a significant challenge for the exchange. These legal battles could reshape the company’s future, which remains under intense scrutiny from regulators worldwide.