As of February 2, 2025, Binance, the world's largest cryptocurrency exchange, is facing several legal challenges:
France Initiates Fraud Investigation
French authorities have launched a judicial investigation into Binance for alleged money laundering, tax fraud, and other charges. The probe covers activities from 2019 to 2024 and includes allegations of facilitating money laundering related to drug trafficking. This development follows earlier investigations into Binance's operations in France.
Australia's Legal Action Over Consumer Protection Violations
In December 2024, the Australian Securities and Investment Commission (ASIC) filed a lawsuit against Binance Australia's derivatives unit. The regulator alleges that the unit misclassified approximately 505 retail investors as wholesale clients, thereby denying them essential consumer protections. ASIC is seeking penalties and other remedies in this case.
Leadership Changes and Legal Consequences
In November 2023, Binance's founder, Changpeng Zhao, resigned as CEO and agreed to pay a $50 million fine as part of a guilty plea to U.S. federal charges, including violations of the Bank Secrecy Act. Binance also agreed to plead guilty and pay $4.3 billion in fines. Zhao was subsequently sentenced to four months in prison in April 2024.
These developments highlight the increasing regulatory scrutiny Binance is facing across multiple jurisdictions.