Binance, the world’s largest cryptocurrency broker, has found itself in the eye of a storm in Brazil, with the Pyramids Parliamentary Commission of Inquiry (CPI) revealing worrying details about the company’s operations in the country.
According to the final report of the CPI, presented by Deputy Ricardo Silva (PSD-SP) on the afternoon of this Monday (9), both the founder of Binance and its director in Brazil should be indicted for practices of “financial crimes”.
Changpen “CZ” Zhao, the founder and CEO of Binance, is accused of fraudulent management, committing a crime against the financial system and operating a financial institution without proper authorization.
Already Guilherme Haddad Nazardirector of Binance in Brazil, faces similar charges: fraudulent management, crime against the financial system and operating a financial institution without authorization (art. 16).
“44. CHANGPEN ZHAO (BINANCE CASE) — for committing the crime of fraudulent management (Article º of Law No. 7,492/86), for the commission of the offense referred to in Article 7, Item IV of Law No. 7,492/86 (Crime against the financial system)It is for committing the crime of operating a financial institution without permission (Article 16 of Law No 7,492/86).
45. GUILHERME HADDAD NAZAR (BINANCE CASE) — for committing the crime of fraudulent management (Article 4 of Law No 7,492/86), for committing the crime of Article 7, point IV of Law No 7,492/ 86 (Crime against the financial system)It is for committing the crime of operating a financial institution without permission (Article 16 of Law No 7,492/86)”
“Binance moved R$40 billion without any controls”
According to the report, Nazar was questioned about the actions taken by the brokerage after the Securities and Exchange Commission (CVM) issued a “stop order” on the sale of derivatives in the country.
In response, Nazar claimed that adjustments were made to the operation even after the order and that they posted notices to Brazilian customers about leaving their “jurisdiction,” in an attempt to distance the company from any legal responsibility.
However, the document says that the derivatives operation remained available to Brazilians who simply changed the language of the website to Portuguese or other languages, thus defying the CVM order.
The CPI highlighted that Binance moved R$40 billion in 2021, “without any regulated institution having control over customers or the origin of funds.”
“Even more alarming, Binance has been linked to a fraudulent Ponzi scheme attributed to former waiter Glaidson Acácio dos Santos.”
Furthermore, the information collected shows that Binance, under the leadership of its CEO, Changpeng Zhao, has created a complex network of legal entities, many of which have no clear commercial purpose, with the main purpose of circumventing regulations.
“Although the company does not reveal the exact location of its headquarters, it is known to have offices in global cities such as São Paulo, Singapore, Malta, Dubai, Tokyo and Paris. Zhao has stated that the company’s headquarters are located ‘where he currently is,’ indicating an approach to avoid regulatory costs.”
The vote is scheduled for this Monday afternoon (17).
Binance’s advisors have been contacted for comment, but at the time of writing this article we have not heard back. The article will be updated.
Topic in development.
Source: Live Coins

Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.