- French prosecutors investigate Binance (2019-2024) for alleged tax fraud, money laundering; company denies charges, vows legal defense.
- US Supreme Court rejects Binance’s appeal to dismiss securities lawsuit; case proceeds, may shape crypto regulations.
French authorities are investigating Binance, the world’s largest cryptocurrency exchange by trading volume, over potential tax fraud and money laundering.
The inquiry, led by the Paris Public Prosecutor’s Office, examines activities from 2019 to 2024. Reuters reported the probe on January 28, confirming earlier suspicions of regulatory scrutiny.
The investigation follows a preliminary review initiated in June 2023, when French officials first raised concerns about possible financial misconduct.
Documents suggest the exchange has faced formal inquiries since at least 2022. Prosecutors are evaluating whether Binance violated tax laws or facilitated illicit fund transfers.
A spokesperson for the company stated:
“Binance fully denies the allegations and will vigorously fight any charges made against it.”
This development arrives months after Binance resolved a separate case with U.S. authorities. In November 2023, the company agreed to pay $4.3 billion to settle charges tied to anti-money laundering violations.
As part of the settlement, former CEO Changpeng Zhao stepped down. Despite this resolution, Binance remains entangled in legal disputes. The U.S. Securities and Exchange Commission continues to pursue claims that the exchange operated without proper registrations.
Meanwhile, a U.S. class-action lawsuit alleging securities law breaches has advanced. Binance recently lost a bid to dismiss the case, with the Supreme Court declining to intervene. Legal experts note the outcome could set precedents for how crypto platforms comply with investor protection rules.
The French probe underscores widening regulatory pressure on crypto firms. Authorities globally are tightening oversight of crypto platforms, demanding clearer compliance frameworks.
While Binance maintains its operations adhere to local laws, the repeated investigations highlight persistent challenges in balancing innovation with accountability.
As the case unfolds, industry observers anticipate stricter enforcement measures across Europe. The Paris prosecutor’s office has not specified timelines for concluding its inquiry. For now, Binance faces dual battles: defending its reputation in courtrooms and evolving regulatory environments.
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