According to Bloomberg, a Brazilian congressional committee recommended the prosecution of four senior leaders of Binance, including its founder and CEO Changpeng Zhao. The committee accused Zhao and three local Binance executives of fraudulent management, issuance or trading without prior authorization. securities and the unauthorized operation of financial institutions. Lawmakers also recommended that Brazil’s securities regulator (CVM) investigate Binance’s derivatives sales if it receives a cease-and-desist order. The ongoing transactions “repeatedly violated securities market rules,” the commission said in its final report.
According to reports, the committee has been investigating cryptocurrency-related Ponzi schemes in Brazil and can only make recommendations so far, and Brazilian police will decide whether to pursue actual prosecutions.
