Binance’s rise to the pinnacle of global cryptocurrency exchanges has been wrought with legal challenges, multibillion-dollar fines and the arrest of its co-founder. Just when it appeared that the dust was settling, French prosecutors dropped a money-laundering bombshell on the exchange.
A Jan. 28 Reuters report claimed that the Paris Public Prosecutor’s Office was investigating Binance over allegations of money laundering and drug trafficking. Less than 24 hours later, a Binance spokesperson told Cointelegraph that the accusations weren’t true and were tied to previous false claims by French authorities dating back several years.
Binance’s regulatory backlash extends to at least 10 countries between 2021 and 2025, with allegations ranging from Anti-Money Laundering violations to failing to register as a securities operation.
This week’s Crypto Biz dissects the latest regulatory challenges involving two leading crypto exchanges, MicroStrategy’s latest ploy to acquire more Bitcoin and the arrival of tokenized Treasurys on the XRP Ledger.
Binance denies any wrongdoing in French money-laundering case
Binance has denied any wrongdoing in connection with a French money-laundering probe of the crypto exchange.
On Jan. 28, Reuters reported that the Paris Public Prosecutor’s Office was investigating Binance’s activities between 2019 and 2024 over money-laundering allegations connected to drug trafficking. As Cointelegraph reported previously, Binance has been probed by French regulators over money laundering since at least 2022.
A Binance spokesperson told Cointelegraph that the exchange vehemently denies the allegations, adding: “Binance is deeply disappointed to learn that JUNALCO, a Paris division of the French Public Prosecutor’s Office, has taken the decision to refer this matter, which is several years old, to the French judiciary for further investigation.”
Beyond France, Binance faces several legal actions globally, including in the United States, where regulators continue to pursue a civil lawsuit against the exchange.
KuCoin agrees to pay $300M in fines and forfeiture to US DOJ
Cryptocurrency exchange KuCoin has pleaded guilty to operating an unlicensed money-transmitting business in the United States, agreeing to pay $300 million in fines and forfeiture as part of a settlement with the Department of Justice.
The guilty plea was delivered in a Manhattan federal court and followed a lengthy investigation into the crypto exchange. In March of last year, US prosecutors said, “KuCoin employees repeatedly stated on public social media sites that KYC was not mandatory on KuCoin, including in response to posts from customers who had identified themselves as being in the US.”
For the DOJ, this was a huge red flag as KuCoin basically admitted that it didn’t have an effective Anti-Money Laundering and Know Your Customer program.
MicroStrategy proposes 2.5M share offering following fresh BTC purchase
On the same day it disclosed a fresh $1.1 billion Bitcoin buy, business intelligence firm MicroStrategy unveiled a new stock offering to raise cash for “general corporate purposes,” including plans to acquire more BTC. According to the details, MicroStrategy intends to offer 2.5 million units of its perpetual strike preferred stock, which is a type of share that has a liquidation preference and pays dividends at a fixed rate.
“MicroStrategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin and for working capital,” the company said.
Clearly, MicroStrategy’s stash of 471,007 BTC isn’t enough. As chairman Michael Saylor has repeatedly stated, the company plans to buy the Bitcoin top “forever.”
Source: Michael Saylor
Tokenized Treasurys to join XRP Ledger
Tokenization protocol Ondo Finance plans to deploy its tokenized US Treasury fund on the XRP Ledger, giving investors access to government bonds that can be redeemed with Ripple’s RLUSD stablecoin.
According to the Jan. 28 announcement, the Ondo Short-Term US Government Treasuries (OUSG) fund will join the XRP Ledger within the next six months. OUSG provides exposure to short-term US Treasurys backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). It’s the latest example of real-world tokenization of traditional financial assets.
The tokenized Treasury market is currently worth more than $3.4 billion, according to data from RWA.xyz. The broader tokenized RWA market is valued at nearly $17 billion.
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