French Authorities Launch Judicial Probe Into Binance Over Illicit Activities

French authorities have officially launched a judicial investigation into Binance, one of the world’s largest crypto exchanges. The probe centers on allegations of illicit activities, including money laundering, tax evasion, and violations of financial regulations.

The latest development is part of an ongoing saga that began in 2023 when French authorities launched an investigation into Binance for offering unauthorized crypto services to residents and failing to establish an adequate anti-money laundering system. The exchange ultimately withdrew from the French market in 2024 amid mounting regulatory scrutiny.

Binance vs. French Authorities

Before the latest announcement, the crypto exchange has faced increasing challenges from regulators worldwide. Binance, which serves over 250 million users and operates in more than 250 countries, has already been under the microscope in multiple jurisdictions, such as the United States, where prosecutors filed charges against the exchange and its former CEO, Changpeng “CZ” Zhao, for breaching anti-money laundering and sanctions regulations.

In recent months, the French Financial Markets Authority (AMF) has ramped up its scrutiny of the crypto sector, urging companies to adhere to national and European regulations. The AMF has specifically emphasized the need for compliance with the European Union’s MiCA (Markets in Crypto-Assets) framework, which seeks to establish a unified regulatory approach to crypto assets across member states.

Binance’s Regulatory Woes

Over the years, the crypto exchange has been involved in several legal battles. For instance, on November 11, 2024, the defunct FTX exchange filed a lawsuit in the bankruptcy court of Delaware against Binance and its former CEO and co-founder, CZ, seeking to recover $1.8 billion, which it claims to have been fraudulently transferred to the platform.

Before this, Binance submitted a motion requesting the district court dismiss the lawsuit filed by the United States Securities and Exchange Commission (SEC) in June 2023. The lawsuit accused Binance and Zhao of operating unregistered exchanges, broker-dealers, and clearing agencies and misrepresenting trading controls on the platform. The SEC also charged the exchange with violating unregistered sales of BNB and BUSD tokens.

The investigation also highlights rising concerns about the role of unregulated exchanges in enabling illegal activities, such as scams, ransomware payments, and support for organized crime.