Binance's CEO may face new problems in Brazil

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Binance's CEO may face new problems in Brazil

While Binance is still providing its services to its clients in the U.K., the crypto exchange platform, alongside its CEO Changpeng Zhao and other executives, could be facing new problems in Brazil due to alleged fraudulent management.

Following its probe into Ponzi schemes related to cryptocurrency in the country, a Brazilian congressional committee has recommended the indictment of four senior Binance officials, including CZ.

A translation of its report, which is more than 500 pages and centers on pyramid schemes, says its aim is to 'investigate indicators of sophisticated fraudulent operations in the management of businesses involved in crypto'.

Local news outlet Valor Economico reported that the committee had already sent the request to Brazil's Federal Police, Federal Revenue and Federal Public Ministry to pursue investigations into companies such as Binance.

Despite the recommendation of the committee, the decision on whether to proceed with actual indictments is now in the hands of the Brazilian police.

The same committee also asked the securities regulator of Brazil to conduct an investigation on Binance's continued derivatives sales, even after a stop order had been issued to the crypto exchange platform.

Binance proposed to settle the CVM in August by paying $396,000. The government's proposal, however, has been rejected by the agency.

The exchange now faces more fines and penalties from Brazil's regulatory agency, Bloomberg said.

Binance, the world's biggest crypto exchange platform by trading volume, said it had tried its best to work with the Congress of Brazil but failed to do so.

s challenges in the interests of users and the benefit of society as a whole.