A Spanish court has started an investigation against Binance for embezzlement of funds in 2021. The local media reports that a person referred to by the initials “JL” sued the exchange platform for refusing to return his €67,550 investment.

Judge María Ángeles Velázquez, who presided over the case, was satisfied that JL presented sufficient criminal motive in his arguments on Binance. 

Spanish judge opens investigation into Binance over €67,550 misappropriation claim

Binance is facing court claims of market manipulation, and it is supposed to comply with the responses to these claims.

The head of the 27th Court of Instruction of Madrid, María Ángeles Velázquez, stated that there are enough criminal motives. Because of the circumstances, the court has not commented further on the case.

Velázquez granted the wishes of JL, a Spanish businessman who had filed a case against Binance in 2023. JL was aggrieved that the exchange stole his €67,550 investment in their platform. The businessman claims he deposited money on the exchange platform, but it never issued him an access code. He said he resorted to court two years after attempting to retrieve his money in vain.

The Judge’s order is a progressive step for JL, who now must present sufficient evidence in 10 days and request penalties. After the evidence is presented, the Judge will determine if it is sufficient to institute a legal battle in the Spanish courts. However, the ruling may be entirely dismissed if JL offers insufficient evidence.

Binance faces several lawsuits across the globe

The Spanish judge launched a new investigation into Binance just a day after a French court ordered inquiries into the exchange platform for money laundering. 

On Tuesday, Paris prosecutors said investigators would check whether Binance failed to fulfill its know-your-client obligations and, therefore, allowed laundering to take place on its platform. The exchange denied the claims and stated that it would vigorously fight any charges against it.

Paris prosecutors also said in their statement that the investigation will also focus on whether Binance unlawfully acted as a digital-asset service provider before it secured regulatory approval from France in 2022. The allegations under examination began as early as 2019 in France and throughout the European Union.

A few weeks ago, Binance faced a similar case in the US, where the Supreme Court allowed a class action lawsuit to proceed. Former investors accused the exchange of illegally selling unregistered tokens. Binance had argued that the lawsuit was invalid since the US didn’t have jurisdiction over the case.

Despite its legal challenges, Binance is striving to rebuild. Binance Labs has rebranded as an “independent” research institution, enabling CZ to join despite his official lifetime ban from the exchange.

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