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France’s public prosecutor is investigating Binance on suspicion of breaking money laundering and terrorist financing laws, in the latest probe into the world’s largest cryptocurrency exchange.
Binance is “likely to have assisted in habitual money laundering . . . in particular drug trafficking and tax fraud”, the French public prosecutor said on Tuesday, for activities “committed in France but also . . . in all countries of the European Union”.
It marks the latest move against Binance by law enforcement and highlights the use of cryptocurrencies in international criminal operations. The inquiry is an expansion of another that began in France in 2023 over whether it marketed services to consumers without regulatory approval and other allegations.
“Binance fully denies the allegations and will vigorously fight any charges made against it,” the company said, adding that it was “deeply disappointed” that the matter “which is several years old” is being further investigated by French authorities.
The world’s top crypto exchange was fined a record $4.3bn by US officials in 2023 for failing to take measures against money laundering and breaches of international sanctions. Its co-founder, Changpeng Zhao, stepped down at the time as chief executive and his replacement vowed to enhance compliance controls.
The French probe relates to activities from 2019 to 2024, after users complained about losing money through investing on the exchange because of incomplete disclosure. Prosecutors said the company “sent promotional communications” to users in France “via influencers and advertising campaigns on social networks” before Binance was registered with regulators, in breach of the law.
