Brazil Committee Recommends Indicting Binance Officials, CZ
Binance, the world’s largest cryptocurrency exchange by daily trading volume,
may face another legal battle if Brazilian authorities accept the recommendation of a committee at the National Congress to indict some of its leaders, including founder and chief executive
Changpeng Zhao.
The committee, which had been investigating crypto-related Ponzi schemes,
has accused CZ and three senior local Binance employees of fraudulent management, offering or trading securities without prior authorization as well as operating a financial institution
again without authorization, Bloomberg reported.
Reacting to the news, the exchange said in a statement that it went to
“great lengths” to actively collaborate with the committee which wrote in a report accompanying its recommendations that Binance is
“surrounded by suspicion” in Brazil.
The Brazilian lawmakers also recommended that the country’s securities regulator,
Comissão de Valores Mobiliários (CVM), investigate Binance for
“repeated violation of the securities market rules.”
The parliamentary committee’s recommendation for indictment
may turn into another setback for Binance this year. The crypto behemoth has been dragged into legal battles and other clashes with financial regulators in the U.S., Europe, and elsewhere.
