Binance, the world’s largest cryptocurrency exchange, is under investigation by French prosecutors for “aggravated money-laundering” and operating an unauthorized exchange. The police raided Binance’s Paris office just days after the exchange’s French CEO, David Prinçay, dismissed concerns about US regulatory charges affecting Binance’s other operations, comparing them with the flapping of a butterfly’s wings.
Dismissing US Regulatory Charges
Prinçay was asked by CNBC if he was concerned about charges from the top two US financial regulators against the exchange. He retorted, “I don’t care what happened in the US. We are in Europe, with a French regulator, a European regulator.” Prinçay insisted Binance.US assets were separated from the international exchange, an assertion also made by the exchange’s legal team. However, the US Securities and Exchange Commission (SEC), which charged Binance last week with 13 securities charges, disagrees. The SEC argued that Binance user funds are at “significant risk” of flight due to founder Changpeng Zhao’s alleged ownership of an interlocking set of Binance-related companies. Binance’s founder, Zhao, dismissed the police statement and reporting as “FUD,” claiming it was a “surprise on-site” inspection that was “the norm.”
Charges Faced By Binance
Binance faces over a dozen charges from the SEC and a similar slate of allegations from the Commodity Futures Trading Commission. A reported Department of Justice probe is also ongoing into the exchange, according to an SEC complaint. Prinçay called the US allegations of commingling a “car crash.” However, the situation is far from over, and the future of Binance remains unclear.
The ongoing investigation against Binance by French prosecutors adds to the regulatory pressure on the exchange. The flippant attitude of Binance’s French CEO, David Prinçay, towards US regulatory charges has now turned into a full-blown investigation by French police. The allegations of “aggravated money-laundering” and operating an unauthorized exchange are very serious charges that could have far-reaching consequences for Binance. These charges, along with the US regulatory charges, could potentially lead to a loss of trust among Binance’s customers, partners, and investors. It remains to be seen how Binance will respond to these charges and what the future holds for the exchange.
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