France Probes Binance Over Money-Laundering Lapses — WSJ

By Angus BerwickFrench officials have begun a criminal investigation into Binance for suspected failings in countering money laundering, opening another front in the crypto exchange's legal battles.Binance, which picked Paris as its European hub several years ago, allegedly failed to meet its anti-money laundering obligations, likely enabling the laundering of funds earned from drug trafficking and tax fraud, prosecutors said in a statement.The investigation by the Paris prosecutor's office will look at possible offenses committed between 2019 and last year.Binance, the world's largest crypto-trading platform, pleaded guilty in 2023 to violating U.S. anti-money-laundering requirements and agreed to pay a $4.3 billion fine. Binance's founder, Changpeng Zhao, served four months in jail on a related charge. The company is still fighting separate civil charges by the U.S. Securities and Exchange Commission.A Binance spokesperson said the company fully denies the allegations by the French prosecutors and will vigoriously fight any charges made against it, adding the matter was several years old. Binance said its advances in anti-money laundering compliance had been recognized by authorities.Binance obtained a registration from the French financial regulator in 2022 as it sought to establish itself as a regulated financial player. For a time, Zhao was feted by French officials, meeting at the Élysée Palace with President Emmanuel Macron, who had pledged to make Paris a European tech hub.The prosecutors also accuse Binance of recruiting customers before its registration.Another tech entrepreneur, Telegram founder Pavel Durov, was also courted by Macron, who invited Durov to base his messaging app in Paris. Last year, Paris prosecutors charged Durov with complicity in distributing child pornography and other illegal goods on his platform.This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).