Binance Under Intense Scrutiny as Spanish Court Investigates €67,550 Claim

• Spanish court probes Binance for withholding €67,550 investment.
• CZ’s exchange also faces money laundering investigations in France and the U.S.
• The exchange must present evidence in Spanish court in the next 10 days.

Legal troubles are piling up for Binance, with the exchange now under investigation in Spain over a €67,550 funds misappropriation. This investigation adds to ongoing probes in France and a class-action lawsuit in the U.S. that could impact the exchange’s future.

Spanish court Probes Binance Over Misappropriation of Funds

A Spanish court has launched an investigation into Binance following a complaint filed by a businessman regarding alleged misappropriation of funds. The plaintiff, identified as “JL,” claims that the exchange refused to return his €67,550 investment. The investigation began after JL accused the exchange of withholding his funds despite numerous attempts to recover them over two years.

Judge María Ángeles Velázquez, who presides over the case, found sufficient grounds for a criminal investigation. The judge noted that the complaint presented enough evidence to justify proceeding with the case. Velázquez gave JL’s legal team 10 days to submit formal evidence and request penalties for Binance or request for dismissal of the case.

If JL presents enough evidence, the case may proceed to a full legal battle in Spain. However, if the evidence proves insufficient, the case could be dismissed. Binance will have an opportunity to respond to the allegations before the final decision.

Legal Frustrations Mount on Top Crypto Exchange

This investigation is the latest in a series of legal challenges for Binance. Recently, French authorities opened a money laundering probe into the exchange, over its compliance with financial regulations. The exchange is accused of failing to meet know-your-client (KYC) obligations, which led to illicit activities on its platform.

The French probe follows allegations that Binance operated as an unauthorized digital-asset service provider before it secured regulatory approval in 2022. These investigations focus on events dating back to 2019, both in France and across the European Union. The exchange has denied any wrongdoing and vowed to contest the accusations.

In the United States, the firm also faces a class action lawsuit over unregistered token sales. The Supreme Court allowed the lawsuit to proceed, despite Binance’s attempts to argue against the jurisdiction of U.S. courts. These ongoing legal battles further complicate the challenges facing the exchange.

Binance Focus on Regulatory Compliance Amid Increased Scrutiny

However, Binance continues to focus on regulatory compliance efforts. Binance Labs, its research arm, recently rebranded as an independent institution. This move allowed CEO Changpeng Zhao, who has been banned from the exchange, to rejoin the organization in a different capacity.

The firm’s legal troubles could have a major impact on its operations and reputation. As the investigations unfold, the exchange faces increased scrutiny from both regulators and investors Although Binance intends to address these issues, the outcome of these lawsuits could shape its future in global markets and its position as a leading cryptocurrency exchange.

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