Binance is under investigation in France for tax fraud and other charges

Binance, the world’s largest cryptocurrency exchange, is facing a second investigation in France. This new legal probe, which was officially opened on January 28, 2025, is related to a range of alleged criminal activities, including tax fraud, money laundering, drug trafficking, and other possible undisclosed charges. French prosecutors are examining the platform’s operations, and it appears this investigation could be a continuation of an earlier probe from 2023, which primarily focused on money laundering and the facilitation of illicit financing.

The latest investigation comes as Binance faces increasing scrutiny from global regulators, following the wave of legal challenges in 2023 that followed the collapse of FTX, a major cryptocurrency exchange. This event triggered a series of investigations into the practices of various digital asset trading platforms. Amid these challenges, Binance’s role in the broader cryptocurrency ecosystem has come under intense examination, particularly in terms of its compliance with financial laws.

In 2023, regulators from the U.S. and other countries took a close look at Binance’s operations, alongside other major exchanges like Coinbase. Binance faced multiple legal actions, including from the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). The DOJ investigation ultimately led to a historic settlement, with Binance agreeing to pay $4.3 billion in fines. The settlement also mandated improvements in the company’s compliance systems and leadership changes within its executive team.

In the aftermath of these legal challenges, Binance’s founder, Changpeng Zhao (CZ), resigned as CEO, with Richard Teng stepping in as his replacement. Zhao’s resignation came after a period of legal turmoil, which also saw him briefly incarcerated for four months before being released in late 2024.

Despite these setbacks, Binance continues to operate globally, and the platform’s legal troubles remain a point of contention as regulators around the world scrutinize its compliance with financial laws. As the investigation in France progresses, industry watchers will closely monitor the outcome and its potential impact on Binance’s operations moving forward.