Binance, the world’s largest cryptocurrency exchanges, is being the subject of an investigation by the French agency National Jurisdiction for the Fight against Organized Crime (Junalco).
In a statement sent to cryptootics by the Prosecutor’s Office of Paris, it is notified that Junalco opened the inquiries for a series of crimes attributed to the companyincluding aggravated money laundering, fiscal fraud money laundering, money laundering in relation to drug trafficking and illegal exercise of the digital asset services provider profession (PSAD).
The authorities investigate Binance’s actions between 2019 and 2024, specifically in France, although the facts extend indivisible to all countries of the European Union. The entity argues that Binance would have breached its diligence obligations due in the context of the fight against money laundering and the financing of terrorism during the period of events in question.
The investigations focus in particular on how the cryptocurrency exchange complied with its obligations to know-tu-client (KYC), “so it is likely that the group has helped in the usual washing of sums derived from various crimes, Including drug trafficking and fiscal fraud, ”says Junalco’s statement.
The Agency Against Organized Crime also recalled that Binance “sent promotional communications to resident or established clients in France”, through influencers and using advertising campaigns on social networks. This, says the office, was before the Exchange was registered as a digital asset services provider (PSAD) in the authority of the Financial Markets (AMF) “without the knowledge of the regulatory authorities and in violation of the applicable law” .
According to Junalco, the investigations will continue now, under the direction of an instructional judge. “And they will have the particular objective of clarifying the scope of the facts, the role of Binance executives and the degree of participation of the different companies on the platform,” says the statement.
This is not the first time that the Bitcoin and cryptoactive exchange house faces research in France. For a couple of years, another office, the specialized interregional jurisdiction (Jirs), had already announced an investigation against Binance For the same crimes typified by Junalcoas cryptootics reported in 2023.
These investigations reflect a collaboration between different agencies to examine the regulatory compliance of Binance and its possible involvement in criminal activities. The consequences for Binance could be severe, since the crimes attributed to the platform They are punished with sentences of up to 30 years in jail.
In addition, these investigations could lead to financial sanctions, the suspension of operations in certain jurisdictions or even the closing of the platform in the worst case.
Binance responds to the accusations
After knowing Junalco’s decision to open an investigation against Binance, the cryptocurrency exchange was spoken about this Tuesday.
In a statement sent to the writing of cryptootics, the platform said it was “deeply disappointed” of Junalco’s investigation, as well as the fact that they decide to raise the case to the French judiciary for greater investigation.
“Although we generally do not comment on legal or political procedures, Binance completely denies the accusations and will vigorously fight against any position against him,” said the company.
The Exchange also stressed that its advances in the field of anti -salavation of money and compliance “have already been recognized by leading authorities”, including Americans Finnn, the Department of Justice and the Office of Assets Control of the Department of the Treasury.
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This article was updated at 7:58 pm Venezuela time To include the Binance statement.
