Binance faces judicial probe in France over money laundering and tax fraud

Key Takeaways

French investigators are examining Binance for alleged money laundering linked to drug trafficking, tax fraud, and unregulated trading.
The investigation includes activities from 2019 to 2024 across the EU.

Binance is under judicial investigation in France over allegations of money laundering, tax fraud, and other criminal offenses.

The probe, led by the Paris public prosecutor’s economic and financial crime division (JUNALCO), also includes accusations of money laundering tied to drug trafficking.

A Reuters report stated that the probe covers activities from 2019 to 2024 across France and the European Union.

JUNALCO initiated the investigation after receiving user complaints about financial losses allegedly resulting from misleading information provided by the world’s largest crypto exchange.

Users also alleged that Binance operated without the required regulatory approvals.

French authorities had previously conducted a preliminary investigation into Binance in 2023, examining potential illegal client solicitation and money laundering violations.

The exchange faces mounting legal challenges globally, including a US Supreme Court decision allowing a lawsuit over unregistered token sales to proceed.

In Australia, regulators sued Binance’s local derivatives operation for allegedly misclassifying retail customers as wholesale clients, removing consumer protections.