French authorities have opened a judicial investigation against Binance, the world’s largest crypto exchange. The investigation is being conducted by the economic and financial division of the Paris prosecutor’s office (JUNALCO). The charges include money laundering related to drug trafficking and tax violations, writes Reuters.
The prosecutor’s office said that the investigation covers the period from 2019 to 2024 and concerns crimes committed both in France and in the European Union. The case was initiated following complaints from users who reported losing money due to incorrect information provided by the platform. Binance is also accused of conducting trading activities without the necessary permits.
Binance has not yet commented on this information.
This case is just one of the company’s many legal problems in different countries. Also this month, the US Supreme Court allowed the proceedings against Binance and its founder Changpeng Zhao (CZ) to continue, where investors accuse the platform of selling unregistered tokens that have collapsed in value.
In December 2023, the Australian regulator filed a lawsuit against Binance’s local unit, accusing it of depriving retail customers of consumer protections by misclassifying them as wholesale investors.
Interestingly, BNB’s price has barely reacted and remains at $672.41 (+1.48% over 24 hours). But it is still better to withdraw your assets from Binance for a while.
As a reminder, in 2023, French prosecutors were already investigating Binance on charges of illegal customer recruitment and money laundering. Also, the US Securities and Exchange Commission (SEC) charged Binance and its founder with 13 offenses, including operating as an unregistered securities exchange and not having restrictions for US users.
At the same time, an international money laundering scheme using cryptocurrency was exposed
January 27 The European Union Agency for Criminal Justice Cooperation (Eurojust) reported on the results of a joint operation by law enforcement agencies of Spain, Cyprus, Germany, with the support of France, Eurojust and Europol. Disrupted an organized criminal group that laundered approximately EUR 100 million. Twenty-three suspects were arrested, more than EUR 8 million in cash was seized, and EUR 27 million in cryptocurrency was frozen.
The investigation began in 2023 when the Spanish Border Police recorded suspicious flights with large amounts of money to Cyprus. The criminal group acted as a «financial service» for other criminal organizations, using cryptocurrency and physical transportation of cash via commercial flights and public transport. They carried out between four and six money laundering transactions every week.
The group consisted of at least 52 members, most of whom operated in Spain and Cyprus. They worked with clients through international contacts linked to commercial companies around the world.
In October 2024, the first large-scale actions against the group were carried out in Spain, France and Cyprus, followed by additional operations in November. A total of 91 searches were conducted: 77 in Spain, 13 in Cyprus and 1 in France.
The long-term special operation resulted in arrests: 20 people in Spain, 2 in Slovenia and 1 in France; confiscation of more than EUR 8 million in cash, EUR 2 million in bank accounts and freezing of EUR 27 million in cryptocurrency.
Spelling error report
The following text will be sent to our editors: