A Brazilian congressional committee has called for the indictment of Binance CEO Changpeng Zhao and three other company executives. Bloomberg said on October 10.
Following the commission’s recommendations, the decision to charge Zhao and the other company executives now rests with the Brazilian police.
The commission alleged that Zhao and the other executives engaged in fraudulent management, offering or trading in securities without prior authorization, and operating a financial institution without authorization.
The same congressional committee asked Brazil’s securities regulator, Comissão de Valores Mobiliários (CVM), to investigate Binance’s continued derivatives sales following an earlier stop order. Related investigations began in April.
Bloomberg noted that the CVM rejected a 2 million reais ($396,000) settlement proposed by Binance in August. It says Binance will now face further fines and penalties.
Binance responds to accusations
Binance responded to the report by saying it has made extensive efforts to work with Brazil’s congressional committee. The company said:
“[Binance] strongly rejects any attempt to do so [it] be a target or even expose its users and employees to accusations of bad practices without any evidence, amid competitive disputes given the company’s leading position in Brazil and in the world.”
Binance and its executives are also under scrutiny by authorities outside Brazil. In June, the US Securities and Exchange Commission (SEC) filed charges against Binance, Binance.US, Changpeng Zhao and related parties for alleged violations of securities laws. The Commodity Futures Trading Commission (CFTC) has charged Binance additional fees, while the Department of Justice (DOJ) is also reportedly considering the charges.
According to reports that emerged in June 2023, Binance has also been under investigation by French authorities for over a year.
Additionally, Binance has exited several countries in anticipation of regulatory challenges, including Russia, Canada, Singapore and the Netherlands.
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