
A Brazilian congressional committee has asked Binance CEO Changpeng Zhao and three other company executives to be indicted, Bloomberg said.
The decision to indict Zhao and other company executives is now with the Brazilian police.
The committee alleged that Zhao and the other executives have engaged in fraudulent management, offering or trading securities without prior authorization, and operating a financial institution without authorization.
The same congressional committee asked for Brazil's securities regulator, Comisso de Valores Mobiliários, to investigate Binance's continued derivatives sales following an earlier stop order. Bloomberg said the CVM rejected a proposed 2 million reais settlement proposed by Binance in August. Binance will now face additional fines and penalties, the company said.
Binance responded by saying it has made significant efforts to work with the Brazilian congressional committee. The company said it was launching a new product, resulting in a surge in demand.
Binance and its executives are also subjected to scrutiny from authorities outside of Brazil. In June, the US SEC filed charges against Binance, Binance.US, Changpeng Zhao, and others over alleged violations of securities law. Binance has also been charged by the Commodity Futures Trading Commission, while the Department of Justice is reportedly weighing charges as well.
Binance has been under investigation for more than a year by French authorities, according to reports that emerged in June 2023.
Binance has left several countries in preparation for regulatory challenges, such as Russia, Canada, Singapore, and the Netherlands.