French authorities have expanded their investigation into cryptocurrency exchange Binance over alleged violations of European money laundering and terrorist financing laws, as reported by the Financial Times.
Prosecutors claim that Binance is "likely to have assisted in habitual money laundering . . . in particular drug trafficking and tax fraud." The probe, covering 2019 to 2024, builds on an earlier inquiry into whether the exchange illegally marketed its services in France before securing regulatory approval. Binance denies the allegations, stating it is "deeply disappointed" that the "several years old" case remains under investigation.
France initially took a welcoming stance toward the exchange, with President Emmanuel Macron meeting Binance Co-founder and then-CEO Changpeng Zhao in 2021. The country granted Binance regulatory status in 2022, unlike the UK, which blocked its services. Despite the investigation, Binance remains operational in France, with consumer protection and anti-fraud agencies now overseeing the case.
The French probe follows Binance’s $4.3 billion settlement with U.S. authorities in 2023 for failing to prevent money laundering and sanctions breaches. As a result, Zhao stepped down as CEO and served four months in prison. His successor, Richard Teng, has pledged to establish stronger compliance measures.
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