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

Coin WorldTuesday, Jan 28, 2025 1:01 pm ET

1min read

French Authorities Launch Judicial Probe into Binance over Allegations of Money Laundering and Tax Fraud

French authorities have escalated their scrutiny of cryptocurrency exchange Binance, launching a judicial probe into allegations of serious financial misconduct. The investigation, initiated after user complaints about financial losses and misleading information, revealed that Binance was neither registered nor licensed by the Autorité des Marchés Financiers (AMF) at the time. Furthermore, Binance allegedly ran advertisements through influencers before its legal registration, in violation of French laws.

The exchange continues to face mounting lawsuits and criminal allegations globally. In the US, the Supreme Court recently allowed a class-action lawsuit against Binance to proceed, alleging the company sold unregistered tokens illegally. In Australia, regulators sued Binance’s local derivatives operation for allegedly misclassifying retail customers as wholesale clients, removing consumer protections.

Adding to the scrutiny, Binance transferred $20 million worth of BTC, ETH, and SOL to Wintermute earlier today. Critics argue that Wintermute engages in market manipulation by using artificial liquidity to exploit retail investors unfairly. The exchange also faced similar allegations before for listing low market-cap meme coins.

In response to the allegations, Binance has strongly denied the charges, stating that the allegations are "several years old" and that it is "deeply disappointed" to hear it is being pursued. The exchange has been proactive in enhancing its anti-money laundering (AML) strategies, demonstrating adherence to standards established by leading authorities.

The ongoing investigation into Binance by French authorities underscores the escalating scrutiny faced by cryptocurrency exchanges globally. As regulatory frameworks evolve, Binance is at a critical juncture where its responses to these challenges will have lasting implications for the firm and the broader market. Stakeholders must remain informed and prepared as this situation develops, potentially reshaping the future of cryptocurrency trading and compliance practices in the industry.

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