French authorities have opened an investigation into Binance, the largest crypto exchange by trading volume, over possible involvement in fraud.
In a Tuesday release, the economic and financial arm of the Paris prosecutor’s office, JUNALCO, announced launching a new investigation into Binance. Notably, the federal agency stated it is probing the exchange on a chain of misconducts, including abating money laundering, drug trafficking, and terrorism financing.
Binance Face Fresh Regulatory Setback
The French prosecutor revealed it was looking into Binance’s activities spanning five years, specifically between 2019 and 2024. The investigation aims to uncover the trading platform’s involvement in fraud not only in France but also in other countries in Europe.
Meanwhile, the probe is in addendum to its years-long assessment of the leading exchange. The duo’s legal battle dates back to 2023, when the French prosecutors tried Binance over unlawfully promoting unregistered securities within its borders before getting an official license.
Notably, the June 2023 investigation trailed complaints from users that they lost money on Binance. The prosecutor opened a preliminary probe into the firm for luring users through promotions and influencers and facilitating fraud.
Moreover, Binance founder and former CEO Changpeng Zhao (CZ) faced a similar plight in the United States. The exchange’s founder pleaded guilty to money laundering, getting a 4-month prison sentence and Binance, a $4.3 billion fine.
The Australian Securities and Investment Commission (ASIC) also sued Binance in December for failing to protect over 500 users, as stated in the federal law. The lawsuit noted that the exchange did not provide the required customer disclosure, resulting in substantial losses for the affected users.
Binance Says It Is Disappointed Over Probe
A Binance spokesperson expressed disappointment in reaction to the latest probe. The representative denied the allegations, insisting that the leading exchange would legally dispute any charges against it.
The statement frowned on the fresh investigation, arguing the matter is “several years old.” It also noted that Binance has improved its anti-money laundering (AML) compliance through thorough Know-Your-Customer (KYC) and better employee education.
Meanwhile, despite regulatory woes, Binance still controls substantial market shares. According to Coingecko, the exchange controls 34.7% of the market’s activities, and its trading volume topped $1 trillion in December 2024.
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