PARIS, Jan 28 (Reuters) - French investigators said on Tuesday they had opened a judicial probe into money laundering, tax fraud, and other charges at Binance, the world's largest cryptocurrency exchange. The economic and financial crime section of the Paris public prosecutor's office (JUNALCO) stated that the investigation includes money laundering in connection with drug trafficking.

The probe, which covers the period from 2019 to 2024, follows complaints from users who alleged they lost money after investing via the platform due to incorrect information and lack of regulatory approvals. Binance has denied the allegations, stating it will "vigorously fight any charges made against it."

Binance's founder and former CEO, Changpeng Zhao, was sentenced to four months in prison last year after pleading guilty to violating U.S. money laundering laws. The exchange also agreed to pay a $4.3 billion penalty. U.S. authorities accused Binance of fostering a "Wild West" environment that welcomed criminals and failed to report over 100,000 suspicious transactions involving designated terrorist groups.

In response to the ongoing scrutiny, Binance emphasized its efforts to improve compliance, including implementing global anti-money laundering (AML) and Know-Your-Customer (KYC) standards. The company also highlighted enhanced employee training and adherence to regulatory requirements.

This investigation marks a significant escalation in the scrutiny of Binance's operations in Europe. The cryptocurrency industry has faced increased regulatory attention globally, with authorities warning about its potential role in facilitating criminal activities.