A Brazilian congressional committee has recommended local law enforcement move to indict Binance CEO Changpeng “CZ” and three other Binance executives following a probe into financial pyramid schemes in Brazil.
On Oct. 10 the committee released a 500-page final report accusing Zhao and local Binance executives Daniel Mangabeira, Guilherme Haddad Nazar and Thiago Carvalho of fraudulent management practices, operating without sufficient authorization and offering securities trading without authorization.
In the report, the committee — led by deputy Ricardo Silva — claimed that Binance, Zhao and others “set up an opaque network of legal entities, all controlled directly or indirectly by Zhao, without defined business purpose and with no other purpose than evading compliance with the law.”
The report also recommended the indictment of 45 other people citing “strong evidence” of alleged participation in criminal schemes, with those named linked to multiple crypto companies, including the travel firm 123milhas, the crypto scheme 18K Ronaldinho and others.
Silva wrote that with Binance being accused of regulatory non-compliance in numerous other jurisdictions, in Brazil, Binance’s operations were “surrounded by suspicion.”
The committee recommended the Federal Public Ministry launch an investigation into all of Binance’s Brazil-based operations with a specific focus on tax evasion, money laundering and the financing of organized crime and terrorism.
Additionally, the committee recommended Brazil’s Securities and Exchange Commission (CVM) launch an investigation into Binance’s sale of derivatives products.
The committee claimed that despite being told to
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Author: Tom Mitchelhill
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