Binance, the crypto giant, is being investigated in France for a second time after a 2023 probe.
Binance is the subject of a legal investigation by French prosecutors into allegations of criminal activity, which include the trafficking of drugs, the laundering of money, and the evasion of taxes.
Reuters published a story on Tuesday, January 28th, suggesting that the investigation might involve unreleased additional charges. In 2023, French authorities initiated a prior investigation that focused on the platform’s potential role in facilitating money laundering and criminal financing activities, among other alleged breaches.
This investigation could very well be an extension of that investigation.The collapse of FTX, involving billions of dollars, and several previous bankruptcies placed cryptocurrency exchanges under intense global scrutiny in 2023.
As watchdogs and users alike questioned the functioning of the platform, regulatory authorities increased their focus on digital asset trading venues. The United States Securities and Exchange Commission, the Department of Justice, and other government agencies took legal action against prominent actors in the cryptocurrency industry during this time period.
These activities included legal actions against Binance, Coinbase, and several other cryptocurrency operators. During the time when investigations were being conducted in France and other jurisdictions, the majority of crypto-related litigation was being led by prosecutors in the United States.
Although Coinbase contested the allegations and filed countersuits, Binance was able to secure the largest settlement in the Department of Justice’s history.
In exchange for the agreement to pay fines totaling $4.3 billion, the firm also committed to strengthen its compliance and make changes to its leadership. In spite of this, the SEC continued to pursue its case against the largest centralized exchange.
Changpeng Zhao, the founder of Binance, resigned from his position as CEO, paving the way for Richard Teng to take over as the company’s leader. Furthermore, CZ spent four months in prison before his release in the latter half of 2024.
