The members of the CPI das Pirâmides Financeiras approved the final report on October 9. The document calls for the indictment of Guilherme Haddad Nazar and Daniel Mangabeira, executives of the cryptocurrency exchange Binance Brasil, as well as the founder and CEO of the company Changpeng Zhao (CZ).
The text highlights suggestions from deputy Alfredo Gaspar (União-AL) for the Federal Public Ministry (MPF) to investigate Binance’s conduct for possible violations of the economic order, including crimes such as tax evasion and tax evasion, in addition to money laundering. and financing organized crime and terrorism.
“Binance set up the entire complex structure to avoid reporting to regulatory bodies and escape their determinations. To this end, it used the idea that its operation took place outside Brazilian territory and that, therefore, it was not subject to its legislation”, highlighted part of the report.
Binance exchange, which already faces lawsuits against industry regulators in the United States, now faces a possible indictment in Brazil. In a note sent to Portal Cripto, the exchange stated that “it spared no effort to actively collaborate in the work of the CPI as it believed that the commission would contribute to a constructive debate on the industry’s challenges for the benefit of users and society in general”.
“We strongly reject, however, any attempts to turn Binance into a target, or even expose its users and employees, with allegations of bad practices without any proof, amid competitive disputes given the company’s leading position in Brazil and the world . Binance has been continuously working to proactively assist law enforcement authorities around the world and in Brazil to detect suspicious activity and combat crimes and financial offenses involving the cryptocurrency ecosystem. These efforts also include several concrete investigation cases and several training sessions offered to these authorities.”
Binance also highlighted in its positioning that the company “acts in full compliance with the Brazilian regulatory scenario and maintains constant dialogue with the authorities to develop the industry in a sustainable and safe way”.
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