Binance investigated in France for tax fraud, other charges

Crypto giant Binance is under investigation in France for the second time, following an initial probe in 2023.

French prosecutors have formally opened a judicial investigation into alleged crimes, including drug trafficking, money laundering, and tax evasion at Binance. The probe may also involve additional undisclosed charges, according to a Reuters report published on Tuesday, Jan. 28.

The investigation could be an extension of the previous inquiry launched by French authorities in 2023, which focused on the platform’s suspected role in aiding money laundering and illicit financing activities, among other alleged violations.

Indeed, 2023 harbored global scrutiny for crypto exchanges following the multi-billion FTX collapse and several bankruptcies that preceded it. Digital asset trading venues fell under the regulatory spotlight as watchdogs and users alike questioned platform operations.

During this period, legal actions were initiated by the U.S. Securities and Exchange Commission, the Department of Justice, and other agencies against major players like Binance, Coinbase, and several other crypto operators. While France and other jurisdictions pursued investigations, U.S. prosecutors spearheaded the majority of crypto-related litigation.

While Coinbase refuted claims and launched countersuits, Binance reached the largest settlement in DOJ history. The company agreed to pay $4.3 billion in fines, with compliance improvement and leadership changes attached. Yet, the SEC’s case against the largest centralized exchange proceeded.

Binance founder Changpeng Zhao resigned as CEO, setting the path for Richard Teng to replace CZ as the company’s head. CZ also spent four months in prison and was released in late 2024.