Binance braces as Brazil urges crypto scam indictments

Binance, the largest cryptocurrency exchange in the world, has faced numerous challenges as regulators crack down

article-image

Web Summit (CC BY 2.0), modified by Blockworks

share

A Brazilian congressional committee is recommending the indictment of three Binance executives. 

The executives include Binance CEO Changpeng Zhao, Binance’s Brazil general director Guilherme Haddad Nazar, and Latin America institutional relations director Daniel Mangabeira. 

It’s important to note, though, that while the committee can make suggestions on indictments, it’s up to the Brazilian police to move forward. Bloomberg News first reported on the committee’s recommendation.

If the police do decide to move forward, the executives could face charges related to fraudulent management, operating a financial institution without authorization and a “crime against the national financial system,” per a translated article from Portal do Bitcoin. 

A 508-page report focused on pyramid schemes. According to a translated version of the report, its goal is to ”investigate indicators of sophisticated fraudulent operations in the management” of companies involved with crypto. 

“Binance has remained committed and collaborative with the commission seeking constructive debate on the industry’s challenges in the interest of users and benefit of society overall. We strongly reject the exposure of our users or employees with baseless accusations of bad practices and the attempts to make Binance a target,” Binance said in an emailed statement to Blockworks.

“As a responsible industry leader, Binance remains committed to helping the industry grow sustainably and furthering its security, which includes close collaboration with law enforcement around the world and in Brazil to detect suspicious activities and fight cybercrimes and illicit activities. Binance has an industry-leading global compliance program and investigations team with hundreds of employees across the globe and continues actively collaborating with authorities worldwide to thwart bad actors and keep the ecosystem more secure.”

The probe proposed the indictments of roughly 45 people. 

According to Valor Economico, requests have been made to Brazil’s Federal Police, Federal Revenue and Federal Public Ministry to pursue investigations into companies such as Binance.

The company, which is the largest cryptocurrency exchange in the world, has faced numerous challenges as regulators crack down on crypto. 

Most recently, it formed a partnership with Rebuildingsociety.com to ensure compliance with the United Kingdom’s new regulations from the Financial Conduct Authority on crypto marketing. However, on Tuesday, the FCA issued a restriction on Rebuilding Society, preventing it from approving crypto marketing.

Binance also exited Russia after it announced a sale deal with CommEX. The company was, however, able to reopen business in Belgium after a regulatory issue.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral

article-image

Sponsored

Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM

article-image

The side events were the places to be at Consensus 2024, according to attendees

article-image

Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them

article-image

I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right

article-image

Also, the ETF hype train can count out at least one member