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Binance Halts ADA Deposits Amid French Money Laundering Probe

Coin WorldTuesday, Jan 28, 2025 1:56 pm ET

1min read

Binance, the world's largest cryptocurrency exchange, has announced a temporary suspension of Cardano (ADA) deposits on its platform, effective from a specific date. The decision comes as a result of a recent investigation by French authorities into alleged money laundering, tax fraud, and other crimes at Binance, involving offenses that took place in France and the broader European Union (EU) from 2019 to 2024.

Binance has denied the allegations and stated that it will "vigorously fight any charges made against it." The investigation, led by JUNALCO, the division of the Paris public prosecutor's office that handles economic and financial crime, follows an initial probe opened in June 2023 for "aggravated money laundering" and the "illegal" provision of crypto trading services before Binance received regulatory approval from the AMF, the French financial regulator, in 2022.

Binance has expressed disappointment with the decision to refer the matter to the French judiciary for further investigation. In response to the initial investigation in 2023, then-CEO Changpeng "CZ" Zhao called the reports "FUD" (fear, uncertainty, and doubt) on social media and reaffirmed Binance's commitment to its presence in France, which he called the exchange's "flagship center in Europe."

In April 2023, Zhao was sentenced to four months in prison in the U.S. for failing to implement an adequate know-your-customer (KYC) and anti-money laundering (AML) regime at Binance, violating the Bank Secrecy Act (BSA). Binance also pleaded guilty to violating the BSA and sanctions laws, and agreed to pay $4.3 billion in fines and penalties to settle the charges. As part of the plea deal, Zhao stepped down as CEO of Binance, and the exchange appointed Richard Teng, a former regulator, as the new CEO.

Since Teng's takeover, Binance has stated that it has stepped up its compliance efforts, increasing headcount and spending by nearly 40% year-over-year. The temporary suspension of Cardano (ADA) deposits is a proactive measure taken by Binance to ensure the security and integrity of its platform while the investigation is ongoing.

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