Madrid Court to Investigate Binance Spain Over Fund Misuse

Madrid court investigates Binance Spain for fund misappropriation, raising regulatory concerns and legal consequences for crypto exchanges.

A Madrid court has proposed a trial against Binance Spain SLU, the Spanish subsidiary of the global cryptocurrency giant Binance. A Spanish businessman initiated a misappropriation charge after losing 67,550 euros through the platform.

The judge María de los Ángeles Velázquez determined that enough criminal proof exists to advance with this case. According to the businessman, Binance deliberately locked his funds and denied him the required operational access key for his account. The company showed zero response to multiple requests that were made.

In 2023, lawyer María Victoria Vega from Auren assisted in filing the complaint on behalf of her client. Two bureaufax requests represent his attempt to recover funds before filing a lawsuit which Binance allegedly did not answer.

Judge Velázquez ordered Changpeng Zhao of Binance to present himself for testimony during the investigation. However, he did not appear in court. The judicial proceedings stand at an important juncture that requires all involved parties to submit criminal charges or seek dismissal within a 10-day window.

Binance elected not to provide any statements regarding the case because it is still under legal consideration. This legal problem increases Binance’s already present regulatory difficulties.

Madrid Court Case Against Binance Spain May Influence Future Laws

The legal problems Binance faces in no way affect its current standing as the global leader among crypto exchanges. Regulatory inspections of the company have mounted across different countries. Changpeng Zhao stood guilty to money laundering charges during an American trial in November 2023 and surrendered his CEO position afterward.

The Australian branch of Binance began facing investigations in December 2024. The Australian Securities and Investments Commission claimed Binance improperly labeled more than 500 retail customers as wholesale clients which increased their risk exposure.

Since the summer of 2022, Binance Spain operated as a registered entity with Banco de España authority. The result of this ongoing court case would affect Binance’s business operations throughout Spain along with other locations.

Greater regulatory scrutiny across cryptocurrency markets makes Binance’s legal disputes clear evidence of compliance becoming essential for crypto sector operations. A forthcoming Madrid court ruling has the potential to create legal standards that other countries might follow when taking legal measures against crypto exchanges.