French authorities have expanded their investigation into Binance, probing alleged money laundering and tax fraud activities from 2019 to 2024, as reported by Reuters.

Binance’s Response:
Binance has publicly denied the claims, stating that it will “vigorously fight any charges made against it.”

The investigation is led by JUNALCO, the Paris public prosecutor’s division specializing in economic and financial crimes, concerning potential offenses in both France and the wider European Union. The inquiry began in June 2023 when authorities looked into aggravated money laundering and the unauthorized provision of crypto trading services, prior to Binance receiving regulatory approval from the French financial regulator AMF in 2022.

Disappointment from Binance:
A Binance spokesperson expressed disappointment at JUNALCO’s decision to refer the case to the French judiciary for deeper investigation, noting its age and the ongoing compliance efforts.

In light of the original investigation in 2023, then-CEO Changpeng “CZ” Zhao dismissed the reports as “FUD” on social media, reaffirming Binance’s commitment to maintaining its operations in France, regarded as its flagship center in Europe.

Last year, Zhao was sentenced in the U.S. for failing to enforce adequate KYC and AML practices, leading to violations of the Bank Secrecy Act, as Binance pleaded guilty to violating these laws and agreed to pay $4.3 billion in penalties. Following Zhao’s plea deal, he agreed to resign, and Richard Teng was appointed as the new CEO, with Binance enhancing its compliance initiatives and increasing its budget significantly.