Binance Faces Spanish Criminal Probe
A Spanish court is investigating Binance for the alleged misappropriation of funds in 2021. The case stems from a complaint filed by a Spanish businessman, “JL,” who claims Binance withheld his €67,550 investment.
Spanish Court Investigates Binance
Judge María Ángeles Velázquez has found “sufficient criminal motives” to proceed, giving JL’s legal team 10 days to present a formal indictment. This development follows recent investigations into Binance by French authorities for money laundering and accusations of market manipulation.
The plaintiff, JL, alleges that Binance failed to provide him with an access code to retrieve his funds, leading to a two-year struggle to recover his investment. Judge Velázquez's decision means Binance could face a formal legal battle in Spain. If insufficient evidence is provided, the claim may be dismissed.
Binance's Legal Troubles Mount
This Spanish case adds to the growing list of legal challenges facing Binance globally, including a class-action lawsuit in the US. The ongoing investigations could significantly damage the exchange's credibility, despite its stated commitment to regulatory compliance.
The prosecutor has reportedly requested testimony from former CEO Changpeng Zhao (“CZ”), who either ignored or refused to comply. This isn't CZ's first legal entanglement in Spain; he was involved in a similar misappropriation suit in 2022, which was settled out of court.
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