A Spanish court began probing Binance as developers accused the company of stealing funds. A “JL” businessman complained about Binance when the exchange refused to return his €67,550 investment.
The administrative court’s lead judge, María Ángeles Velázquez, believes suspect criminal conduct warrants an investigation of Binance’s operations.
Spanish court orders Finance investigation
The 27th Court of Instruction in Madrid has opened an inquiry into Binance after JL accused the platform of withholding his funds. According to JL, he deposited €67,550 into Binance in 2021 but never received an access code to his investment. Despite multiple attempts to recover his money, he alleges that Binance failed to resolve the issue, prompting him to take legal action in 2023.
Judge Velázquez has given JL ten days to present concrete evidence supporting his claim and request penalties. If the court finds the evidence sufficient, the case will move forward. However, the complaint may be dismissed if the evidence does not meet legal requirements. The court has not provided further comments on the matter.
Binance under scrutiny for market practices
Spain’s investigation of Binance has emerged within parallel legal operations throughout other nations. Spain’s court announced its ruling right before France initiated its payment laundering investigation into Binance. Paris prosecutors started an investigation aimed at Binance after discovering its platform allowed illicit financial activity from users because it lacked mandatory know-your-customer (KYC) protocols.
French authorities are probing Binance for operating without a license to provide digital assets even though it attained its initial regulatory approval in 2022. Expanding beyond 2019, such claims now extend to coverage across France and all areas under the European Union’s jurisdiction. Binance officials deny their responsibility and intend to face legal prosecution.
Legal challenges mount for Binance worldwide
Binance’s legal troubles extend beyond Europe. A Supreme Court ruling enabled a class-action lawsuit targeting the exchange to proceed in United States jurisdiction. Binance faces legal accusations for selling unregistered securities, while the company maintains it did nothing illegal. The court accepted jurisdiction against Binance when the company contested U.S. The organization acquired the necessary leadership capabilities to manage the case process.
The company continues its corporate reorganization efforts and manages present-day legal proceedings. Strategic Address Inc. has transitioned into Binance Labs yet continues maintaining Changpeng Zhao’s (CZ) participation following his permanent exchange exclusion.
The company faces permanent review from international regulators as various nations examine Binance’s activities and its reformed control systems. Judicial decisions from these ongoing legal battles will establish vital advances for the crypto market industry in the years to come.