Key takeaways:
- The director of Binance Brazil may be called before the Brazilian parliament as part of a probe into potential pyramid schemes operating there.
- A vote will be held on Tuesday, June 27, which was submitted on June 21 by Congressman Alfredo Gaspar.
Guilherme Haddad, the director of Binance Brazil, may be called before the Brazilian parliament as part of a probe into potential pyramid schemes operating there. Guilherme Haddad, who has ties to his uncle Fernando Haddad, the country’s current minister of finance, has been the CEO of Binance Brazil since late 2022.
A vote will be held on Tuesday, June 27, on the summons request, which was submitted on June 21 by Congressman Alfredo Gaspar of the Brazilian Chamber of Deputies.
Haddad will be required to come before the Brazilian Chamber of Deputies if the proposal is passed, according to the Brazilian news source Portal do Bitcoin. This development occurs while the biggest crypto exchange is the target of a global regulatory crackdown. Authorities in the United States, France, the Netherlands, the United Kingdom, and Brazil have investigated Binance, highlighting the company’s growing worldwide profile.
The delegate further asserted that Binance was used in the nation by pyramid schemes to enable asset transfers. He stated:
“it is vital to understand Binance’s operations, its association with B Fintech, and its involvement with companies facing legal action for harming Brazilian consumers, as this strongly links Binance to the ongoing investigation. “
Authorities in the South American country revealed that the corporation is being scrutinized by authorities worldwide due to the summons mentioned above. The Federal Police and Federal Prosecutor’s Office in Brazil are both looking into Binance. The cryptocurrency exchange is accused of assisting clients in avoiding a stop order on investments in Bitcoin derivatives.
According to a recent report from Portal do Bitcoin, Binance has previously been under pressure from the Securities and Exchange Commission of Brazil to discontinue providing Bitcoin futures products to Brazilian users.
Binance and its CEO Changpeng Zhao submitted a motion to the court on Wednesday to stop the U.S. SEC from making what they claim are false assertions. The motion, which was filed on June 21, charges the SEC with issuing a press statement that contained unsubstantiated assertions and violated standards of professional conduct. According to Binance, there is no proof that Binance US has misappropriated or wasted customer assets.
