French investigators have launched an investigation into cryptocurrency giant Binance, according to Reuters.
Gamza KhanzadaevThe leading cryptocurrency trading platform is reportedly being probed for money laundering, tax fraud, as well as other illicit activities. The authorities have alleged that these violations were also committed in other EU countries.
Back in 2023, the Paris prosecutor's office said that the exchange was under a preliminary investigation related to money laundering violations. The French authorities have now extended their probe.
Binance has vowed to "vigorously fight" any charges made against the cryptocurrency giant. It has also added that it was "deeply disappointed" by the extension of the years-long investigation.
Yuri MolchanThe exchange registered with the country's crypto regulator back in May 2022.
New shareholders
Changpeng Zhao, the former Binance CEO, used to be the sole shareholder of Binance France, the local subsidiary of the crypto giant. Last May, he was replaced by two new shareholders.
The fact that Zhao was the sole owner of Binance France would have prevented the exchange from operating in the country. Under French law, criminals cannot be majority shareholders.
In late 2023, Binance reached a $4.3 billion settlement with U.S. prosecutors after pleading guilty to violating sanctions and anti-money laundering laws. Zhao also stepped down from his top job before serving several months behind bars last year following his criminal conviction.
Apart from the U.S., the cryptocurrency giant has also faced regulatory troubles in other prominent EU countries such as Germany and the Netherlands.
Dan Burgin
Vladislav Sopov