Quickly understand the history and background of various well-known coins

Binance Faces New French Probe: Money Laundering, Tax Fraud Allegations

Coin WorldTuesday, Jan 28, 2025 3:56 pm ET

1min read

Binance, the world's largest cryptocurrency exchange, is facing a new investigation in France over allegations of money laundering, tax fraud, and other charges, according to a recent report. The company has denied the allegations and vowed to fight any charges made against it.

The investigation, led by the JUNALCO division of the Paris public prosecutor's office, is looking into alleged offenses that took place in France and the broader European Union (EU) between 2019 and 2024. French authorities first began investigating Binance in June 2023 for "aggravated money laundering" and the "illegal" provision of crypto trading services before it received regulatory approval from the AMF, the French financial regulator, in 2022.

Binance has been facing regulatory scrutiny for some time. In November 2023, Binance founder Changpeng Zhao stepped down as CEO and was replaced by Richard Teng. Both Zhao and Binance pleaded guilty to violating anti-money laundering requirements of the Bank Secrecy Act violations. Zhao was released from federal prison last September after spending less than a year incarcerated.

In Nigeria, Binance's chief Nigerian compliance officer Tigran Gambaryan was arrested and jailed on charges of money laundering and operating an unlicensed financial institution. It took an intervention from then-President Joe Biden to secure Gambaryan's release.

Binance has been expanding its compliance efforts since Teng took over as CEO. The exchange has increased its headcount and spending by nearly 40% year-over-year. However, the latest investigation in France is a reminder that the company still faces significant regulatory challenges.

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.