- French prosecutors have allegedly extended their investigation into Binance over alleged money laundering and tax fraud
- The extended probe focuses on Binance’s operations between 2019 and 2024, examining potential links to drug trafficking and offenses across the European Union
- Regulatory concerns have intensified following user complaints about financial losses and accusations of operating without proper approvals
French authorities have broadened their investigation into Binance to include allegations of money laundering and tax fraud. According to Reuters, the inquiry, covering Binance’s activities from 2019 to 2024, also explores potential ties to drug trafficking and crimes across the EU. This development follows complaints from users who claim financial losses and point to the platform’s alleged regulatory breaches.
2023 Investigation Expanded
The investigation into Binance was first launched in 2023 by French prosecutors, which targeted the company’s regulatory compliance and potential tax irregularities. At the time, Binance was accused of operating in France without proper licenses and failing to meet financial reporting standards. These allegations prompted authorities to delve deeper into the exchange’s activities, particularly its mechanisms for preventing money laundering.
As the case unfolded, evidence and witness testimonies suggested broader issues, leading to the probe’s extension. The Paris Public Prosecutor’s Office is now investigating potential links between Binance’s operations and drug trafficking networks, as well as accusations of habitual money laundering.
User Complaints Trigger Deeper Look
Reuters says that the extension of the investigation was driven partly by user complaints. Several customers have reported losing significant funds on Binance’s platform, alleging inadequate transparency and insufficient safeguards. Moreover, regulators flagged the platform for offering services to French customers without securing the required approvals, a claim that Binance has denied.
A spokesperson for the prosecutors highlighted the investigation’s importance, stating, “This case is part of a broader effort to ensure that financial institutions operating in France comply with the country’s legal and tax systems.”
In response to the news, Binance told Coindesk that it was “deeply disappointed to learn that [JUNALCO] has taken the decision to refer this matter, which is several years old, to the French judiciary for further investigation,” signalling a desire to fight the charges.