Crypto News– On October 10, according to Bloomberg, a Brazilian congressional committee recommended the indictment of Binance CEO Changpeng Zhao and three other executives from the company. The decision to indict Zhao and these executives now rests with the Brazilian police.
Changpeng Zhao and Binance Leadership Under Potential Indictment in Brazil
The committee’s allegations against Zhao and the other executives include involvement in fraudulent management, offering or trading of securities without prior authorization, and operating a financial institution without the necessary authorization.
The same congressional committee has also called for Brazil’s securities regulator, Comissão de Valores Mobiliários (CVM), to investigate Binance’s continued derivatives sales despite a prior stop order. These investigations were initiated in April.
Bloomberg further reported that the CVM rejected a 2 million reais ($396,000) settlement proposed by Binance in August. As a result, Binance may now face additional fines and penalties.
Binance responded to the report by stating that it has made extensive efforts to work with the Brazilian congressional committee.
[Binance] strongly rejects any attempts to make [it] a target or even expose its users and employees with allegations of bad practices without any proof, amid competitive disputes given the company’s leadership position in Brazil and in the world.
Changpeng Zhao
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