French Judicial Probe into Binance

French authorities have initiated a judicial investigation into the crypto exchange Binance over allegations of money laundering, tax fraud, drug trafficking, and other charges, as reported by Reuters on Tuesday.

The investigation follows a prior inquiry related to alleged illegal client canvassing and money laundering which was reported in June 2023. Earlier, in 2022, Binance was scrutinized for perceived failures in its know-your-customer (KYC) obligations.

Statements from Binance

A Binance spokesperson expressed disappointment over the decision by JUNALCO, a Paris division of the French Public Prosecutor’s Office, to escalate the matter to active investigation. The spokesperson stated, “While we do not usually comment on legal proceedings as a matter of policy, Binance fully denies the allegations and will vigorously fight any charges made against it.”

They highlighted that Binance’s efforts in anti-money laundering (AML) and regulatory compliance have been recognized by authorities such as FinCEN, the DOJ, and OFAC. The spokesperson noted that Binance has implemented enterprise-wide AML/CFT measures, adhered to Financial Action Task Force standards for AML and KYC, and improved employee training on AML/CFT.

Binance has also faced legal issues in the United States, where in November 2023, both the exchange and CEO Changpeng Zhao pleaded guilty to money laundering, agreeing to a $4 billion fine for Binance and a $50 million fine, along with four months in prison for Zhao.

As reported, Binance remains the largest crypto exchange by monthly spot volume, accounting for $1 trillion or 34% of the total $2.94 trillion spot market volume observed in December.