French prosecutors have opened a judicial investigation into Binance, the world’s largest cryptocurrency exchange, examining allegations of money laundering, tax fraud, and drug trafficking over a five-year period, Reuters reported.
The National Jurisdiction for Combating Organized Crime (JUNALCO) announced Tuesday it has assigned an investigating magistrate to lead the probe, which examines alleged offenses from 2019 to 2024 committed in France and across the European Union.
According to the Paris public prosecutor’s office, the investigation shows Binance allegedly failed to meet its vigilance obligations in combating money laundering and terrorism financing during the relevant period. Authorities are examining whether the platform’s insufficient customer knowledge protocols may have facilitated the laundering of funds from drug trafficking and tax fraud.
Sponsored · Cambria Gold Mines
The probe also alleges Binance sent promotional communications to French customers through influencers and social media campaigns before registering as a digital asset service provider with the Autorité des Marchés Financiers, violating applicable law, according to prosecutors.
“Binance is deeply disappointed to learn that JUNALCO has taken the decision to refer this matter, which is several years old, to the French judiciary for further investigation,” a company spokesperson told CoinDesk. The exchange fully denies the allegations and vows to vigorously fight any charges.
The investigation follows evidence-gathering raids that authorities conducted in 2023 and is an escalation of French scrutiny into the platform. France had previously launched a preliminary investigation into Binance in February 2022 over similar concerns about compliance with know-your-customer obligations.
The French probe adds to Binance’s global regulatory challenges. The company agreed to a $4.3 billion settlement with US authorities in 2024 over violations of anti-money laundering laws and sanctions.
Founder Changpeng Zhao pleaded guilty to failing to implement adequate compliance programs, resigned as CEO, and served four months in prison.
Despite resolving major US enforcement actions, with the Securities and Exchange Commission dropping its lawsuit in May 2025, Binance faces continued international regulatory pressure as authorities worldwide tighten oversight of cryptocurrency platforms.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
