A congressional committee in Brazil recommended the indictment of Changpeng Zhao, chief executive officer of Binance, following a probe into the world’s largest cryptocurrency exchange.
See related article: Binance users in Hong Kong hooked by US$450,000 phishing attacks
Fast Facts
- The 509-page report accuses Zhao and three other 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.
- The report further recommended indicting 45 other people citing “strong evidence” of their alleged participation in fraudulent activity.
- The committee called for the Federal Public Ministry, a body of public prosecutors, to launch an investigation into Binance’s operations in the country, specifically focused on alleged tax evasion, money laundering and organized criminal activity.
- The paper also urged the country’s securities watchdog to launch an investigation into Binance’s derivative products.
- These recommendations are not legally binding but may be used as guidance by authorities.
- The accusation is the latest in a series of global legal challenges piling up for Binance and Zhao. In the U.S., the exchange was sued by the Securities and Exchange Commission and the Commodities Futures Trading Commission earlier this year.
See related article: Binance ICO raised less than US$5 mln: Forbes
