- French prosecutors have opened a new investigation into Binance.
- Binance denied allegations it turned a blind eye to money laundering.
The Paris prosecutor’s office announced a new investigation into Binance over suspicions the crypto exchange was used to facilitate tax fraud and to launder money linked to drug trafficking.
The investigation is focused primarily on how Binance implemented know-your-customer policies on the crypto exchange from 2019 to 2024.
“The investigation has revealed that Binance failed to meet its due diligence obligations in the fight against money laundering and the financing of terrorism during the period in question,” the prosecutor’s office said in a statement.
Binance is also alleged to have operated in France before registering with France’s financial watchdog.
A company spokesperson denied the allegations in a statement to DL News, and said it will fight any charges made.
Binance is the crypto industry’s largest crypto exchange by trading volume. The exchange recorded more than $22.3 billion in trades over the last 24 hours, according to CoinGecko.
In 2023, Binance pleaded guilty to sanctions violations, anti-money laundering and operating without a money transmitting license in the US.
The crypto exchange was fined $4 billion and its CEO, Changpeng Zhao, was forced to resign.
Liam Kelly is a Berlin-based reporter for DL News. Got a tip? Email him at liam@dlnews.com.
