In the lead-up to the police visit to Binance’s Paris office, the chief executive officer of Binance France nonchalantly waved off any concerns regarding the potential impact of regulatory charges in the United States on the exchange’s other operations. Drawing a rather unconventional comparison, the executive likened these concerns to the mere flapping of a butterfly’s wings.
According to a report by Le Monde on Friday, French prosecutors have initiated an investigation into allegations of “aggravated money-laundering” involving the crypto exchange. The report also mentioned that the company is being probed for operating an unauthorized exchange, as stated in an official statement.
In the days leading up to the raid, during the Proof of Talk summit in Paris, CNBC questioned Binance France President David Prinçay about his concerns regarding the charges brought against the exchange by the top two financial regulators in the United States. In response, Prinçay confidently brushed off the concerns, stating, “I am not bothered by what occurred in the U.S. We operate within Europe, under the supervision of both French and European regulators.”
Despite the exchange’s legal team and Binance France President David Prinçay asserting that Binance.US assets were kept separate from the international exchange, the U.S. Securities and Exchange Commission (SEC) holds a different view. The SEC, which recently filed 13 securities charges against Binance, argues that Binance user funds are exposed to “significant risk” of being moved due to allegations of founder Changpeng Zhao’s ownership of a network of interconnected Binance-related companies.
Describing the U.S. allegations of commingling as a “car crash,” the chief of Binance France expressed his disregard for the situation. Prinçay emphasized the need to focus on moving forward rather than getting distracted by the incident. On the other hand, Binance’s founder, Zhao, dismissed the statement from the police and the related reports as “FUD” (Fear, Uncertainty, and Doubt). He considered the on-site inspection, characterized as a “surprise,” to be a normal occurrence.
In another statement, the exchange declared that it would refrain from commenting on the details of ongoing law enforcement or regulatory investigations. However, they reassured that user information is securely held and only disclosed to government officials when accompanied by appropriate documented justification.
There was no immediate response from Prinçay regarding the police visit when a request for comment was made. Binance is currently confronted with more than a dozen charges from the Securities and Exchange Commission (SEC) as well as a comparable set of allegations from the Commodity Futures Trading Commission (CFTC). Additionally, according to an SEC complaint, there is an ongoing investigation by the Department of Justice into the exchange.
