A Brazilian congressional committee is recommending charges be brought against Binance CEO Changpeng Zhao and three Binance executives amid investigations into crypto-related Ponzi schemes.<\/p>\n
The congressional committee accuses Zhao, Daniel Mangabeira, Guilherme Haddad Nazar, and Thiago Carvalho of fraudulent management. It also accuses them of offering unregistered securities and running a financial institution without prior authorization.<\/p>\n
A 500-page report<\/a> by the committee released on Oct. 10 claims that Zhao and the other executives created “an opaque network of legal entities” that lacked a defined business objective, and had the sole purpose of “evading compliance with the law.”<\/p>\n The committee, led by Ricardo Silva, also recommends that the Federal Public Prosecutor’s Office investigate the exchange’s local unit on tax compliance, money laundering, and terrorism financing. And it called for a similar investigation into Binance Capital Management.<\/p>\n The exchange’s derivatives products might also be under probe, with legislators calling upon the Brazilian securities regulator to scrutinize the exchange’s derivatives sales. The committee claims that the platform’s sale of derivatives violated securities market laws.<\/p>\n The report also calls for indicting 45 other individuals, saying there was ample evidence of their involvement in criminal schemes. Some of these individuals are from crypto firms, such as 18K Ronaldinho, banned in Brazil for promoting scams.<\/p>\n 3\/7:<\/p>\n A Troubling Situation: The ‘18k #Ronaldinho<\/a>’ scam has prompted official investigations, leading to #Ronaldinho<\/a>’s summons. His failure to respond to previous summons has raised suspicions about his involvement.<\/p>\n — $BUBBLE Crypton infos 🎙️ (@Cryptoninfos) September 1, 2023<\/a><\/p><\/blockquote>\n\n