French prosecutors have recently initiated an investigation into Binance, the world’s largest cryptocurrency exchange, further complicating its legal situation.
The probe, led by the Paris prosecutor’s office, will focus on allegations that Binance’s French division engaged in illegal trading of digital assets. Additionally, the company faces a separate charge of “aggravated money laundering,” as stated in an official announcement.
Le Monde, the newspaper that initially reported on the investigation, suggested that Binance is suspected of neglecting its obligations to ensure that its clients do not employ the platform for money laundering purposes.
This development comes in the wake of the US Securities and Exchange Commission’s recent actions, in which they charged Binance with violations of securities laws. The SEC’s allegations describe Binance’s conduct as constituting “an extensive web of deception” and a “calculated evasion of the law.”
In response to the investigation and allegations, Binance announced that it would temporarily suspend US dollar deposits and urged clients to withdraw their dollars by the following week.
Regarding the French allegations, Binance stated on Twitter that it had recently undergone an “on-site visit by the relevant authorities.”
The company emphasized its commitment to cooperating with law enforcement agencies worldwide and stated that it complies with all laws in France, as it does in every other market where it operates.
Since its establishment in Shanghai in 2017, Binance has gained significant dominance in the cryptocurrency trading market, elevating its founder, Changpeng Zhao, to billionaire status through its global operations.
However, the platform has faced persistent accusations of facilitating money laundering, employing intricate structures to evade regulation, and violating sanctions. Binance firmly denies these allegations.
