Binance, a big crypto company, just faced a setback in Brazil. A group in the Brazilian Congress looked into scams involving cryptocurrencies and suggested that four top Binance people, including their leader Changpeng Zhao, should face charges. But remember, this group can only suggest charges. The Brazilian police will decide if they'll actually charge anyone. The Brazilian police will determine whether to proceed with actual charges.
Brazil's recent actions are part of a broader trend where many countries, including Australia, France, and the United States, closely scrutinize the world's biggest cryptocurrency exchange. On October 10th, a committee issued a substantial 500-page report, leveling accusations against Binance's CEO, Zhao, and local Binance officials Daniel Mangabeira, Guilherme Haddad Nazar, and Thiago Carvalho. These accusations include fraud, mismanagement, dealing in securities without proper authorization, and operating as a financial institution without the required permissions.
The report claims that Binance, its CEO Zhao, and other top officials have set up a complex network of different companies, all controlled by Zhao, but without much transparency. The report also suggests strong evidence that they've been involved in illegal activities. It recommends charging 45 individuals, including people linked to travel company 123milhas, a crypto project called 18K Ronaldinho, and several other cryptocurrency businesses.
The committee is advising the Federal Public Ministry to start an investigation into all of Binance's operations in Brazil. They want a close look at things like tax evasion, money laundering, and funding organized crime and terrorism.
However, Binance strongly denies any efforts to accuse the company or its users and employees without proof. This is especially important because Binance operates in Brazil and many other countries around the world.
In the United States, Binance is facing two separate lawsuits from local commodities and securities regulators, alleging that Binance and its top officials have violated several financial regulations. In July, Australia's financial regulator canceled Binance Australia's derivatives license and raided its offices. Meanwhile, in May, citing regulatory controls, Binance bid farewell to Canada. Binance has also ceased its operation in Russia due to sanctions.
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