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Due to accusations of money laundering and drug trafficking, French authorities have opened a new investigation into Binance, the biggest cryptocurrency exchange in the world. However, the business maintains that it will vigorously defend against any charges and asserts that these accusations are based on “old” issues.
A recent Reuters report reveals that French regulators are probing Binance’s involvement in illicit financial activities. Responding to the claims, a Binance spokesperson stated, “Binance fully denies the allegations and will vigorously fight any charges made against it.” The company also described the allegations as stemming from events that occurred “several years ago.”
Binance has previously been the subject of regulatory inquiry. Richard Teng took over as CEO of Binance after Changpeng Zhao, the company’s creator, resigned in November 2023. This change in leadership came after Binance and Zhao entered guilty pleas to violations of the Bank Secrecy Act pertaining to anti-money laundering failures. After less than a year in federal jail, Zhao—who risked legal repercussions in the United States—was freed last September.
Beyond France, Binance has also faced legal battles in Nigeria. The company’s chief Nigerian compliance officer, Tigran Gambaryan, was detained on charges of money laundering and operating an unlicensed financial institution. Gambaryan, a former U.S. Internal Revenue Service (IRS) agent, traveled to Nigeria to address regulatory concerns but was instead arrested by local authorities. His release reportedly required intervention from then-U.S. President Joe Biden last fall.
As Binance continues to expand globally, these legal challenges highlight the increasing regulatory pressure on cryptocurrency exchanges. The outcome of the latest French investigation could have significant implications for the company’s future operations.