Binance France on the Hot Seat: AMF Executive Job Switch Sparks Controversy

The vice is tightening around Binance France following the explosive revelations by the Anticor association, which has reported to the justice suspicions of illegal taking of interests related to the recruitment of Stéphanie Cabossioras, former deputy legal director of the AMF.

Binance France in the Eye of the Storm After the Lightning Recruitment of an AMF Heavyweight

The Anticor association has seized the National Financial Prosecutor’s Office after the departure in April 2022 of Stéphanie Cabossioras, deputy legal director of the AMF, to join Binance. Initially recruited as legal director, she was later promoted to the managing director of Binance France.

To grant the accreditation of “Digital Asset Service Provider” (PSAN), the AMF had to ensure the seriousness and integrity of Binance’s executives. How could Mrs. Cabossioras take part in this control procedure while she was about to join the company?

This “revolving door” raises questions, as it happened only one month before Binance France obtained the coveted PSAN status granted by the AMF after examining the file. For Anticor, this recruitment “seems to be a case of illegal taking of interests”.

The association is surprised that Binance France managed to secure the PSAN status despite the legal troubles of its parent company in the United States. It has faced prosecution for money laundering since 2018 and has even recently incurred a colossal fine of 4 billion dollars in this sensational case. Moreover, its founder Changpeng Zhao has already pleaded guilty to violating anti-money laundering laws overseas and is awaiting trial. 

Towards the Opening of a Judicial Investigation?

This report especially reveals, according to Anticor, “the lack of awareness of conflicts of interest risks between public and private sectors in France”. Lawyer Jean-Baptiste Soufron laments that regulators and stakeholders “sometimes consider themselves above the law”.

European Member of Parliament from Place Publique Aurore Lalucq agrees, expressing surprise that France could register Binance while other countries refused. She suspects murky connections and speaks of a possible state scandal.

The crypto sector still escapes strict regulation. However, the new digital assets law should reinforce transparency requirements and authorities’ powers. The AMF might also see its competencies extended.

This case comes at the worst possible time for the exchange, which is already struggling to polish its image. It reminds us of the necessity to regulate this new digital eldorado to eliminate shady areas. Binance and the French authorities must clarify the terms of this recruitment to dispel doubts. 

In the meantime, the National Financial Prosecutor’s Office is analyzing this report to determine if it justifies the opening of an investigation. The AMF has not wished to comment publicly.