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.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (1).jpg

Research

Jupiter has emerged as the undisputed liquidity backbone of Solana, commanding over 90% of spot DEX aggregation and 80% of perp trading volume. But behind the numbers lies a far more ambitious play: a cross-chain, vertically integrated super-app spanning swaps, synthetics, NFTs, memecoins, and launchpads. This report explores Jupiter’s rapid rise, the monetization upgrades reshaping its revenue profile, and the risks that could unwind its dominance, from token dilution to competition. With annualized revenues nearing $300M, the upside is undeniable, if it can navigate the turbulence.

article-image

Curve founder Michael Egorov is working on a new protocol designed to eliminate impermanent loss, rethink token emissions, and capture BTC-native yield

article-image

Mining outfits have gone bust in the wake of prior halvings. Not so this time around.

article-image

Zora’s announcement that its token is for “fun only” sparked a debate about the need for such tokens

article-image

In recent weeks, Helium has hit new all-time highs while passing major protocol milestones

article-image

Financial advisers in a January survey said equity ETFs were their top choice for gaining crypto exposure in 2025

article-image

“Why put a target out there that’s really speculative, not knowing exactly where this environment is going to go?” CarMax CEO Bill Nash said