The CEO of Binance, Changpeng Zhao, along with three local executives, are at risk of indictment in Brazil on allegations of financial crimes.
This follows a congressional committee’s investigation into crypto-related pyramid schemes in the country, which has recommended the indictment of CZ, Daniel Mangabeira, Guilherme Haddad Nazar, and Thiago Carvalho, who oversee Binance’s operations in Brazil.
According to a 500-page report released on October 10, Binance and its leaders are accused of fraudulent management, trading securities without authorization, and operating a financial institution without consent. The report suggests that Binance established a network of legal entities controlled by Zhao to avoid complying with the law.
Furthermore, the committee has called for an investigation into Binance’s tax compliance, money laundering, and alleged financing of organized crime and terrorism by the Federal Public Ministry. They also urged the Securities and Exchange Commission (CVM) to probe Binance’s sale of derivative products, which the committee claims violates market regulations.
Binance is already under scrutiny by the CVM for allegedly offering derivative products illegally in Brazil, and it faces regulatory challenges in various other countries, including France, the United States, and Singapore.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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