Binance faces scrutiny in Brazil, exec summoned to testify before Congress
Deputy Alfredo Gaspar, a member of the Parliamentary Commission of Inquiry (CPI) of the Financial Pyramids has requested the summoning of Guilherme Haddad, the Director of Binance Brazil, to appear before the Brazilian parliament.
This request which was published on published Wednesday, June 21, is part of an ongoing investigation into alleged pyramid schemes operating in the country. The request made by the deputy still needs to be voted on by the other members of the CPI. The vote on the summoning will take place on June 27.
According to a translation of the Brazilian news site Portal do Bitcoin, if the vote is approved, Haddad will face the Brazilian Chamber of Deputies, which is the lower house of Congress. This development comes amidst a global and extensive regulatory crackdown on the cryptocurrency exchange. The exchange has faced scrutiny from authorities in the United States, France, the Netherlands, the United Kingdom, and Brazil, underscoring the multinational attention on the company.
Furthermore, the deputy highlights that Binance was utilized by pyramid schemes such as Ever Operations and Investments and Braiscompany to facilitate their asset transfers.
He said:
Authorities in the South American nation explained that the intent for summons is due to the fact the company is facing the above-mentioned scrutiny from regulators around the world. In Brazil, Binance is also being investigated by the Federal Prosecutor’s Office and Federal Police. The cryptocurrency exchange has allegedly been helping clients evade a stop order on cryptocurrency derivatives investments.
Related: Binance, Binance.US and CZ allege SEC made ‘misleading’ statements on exchange assets
The Brazilian equivalent of the United States
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