Binance Head Summoned to Criminal Inquiry in Brazil
The Brazilian Chamber of Commerce’s Alfredo Gaspar had summonsed Binance’s local director Guilherme Haddad Nazar while securities regulators investigate the exchange’s derivatives offering.
Congressman Gaspar cited Binance’s recent runs-in with international regulators and its involvement in two pyramid schemes as the reason for the call-up.
Binance Will Send Brazil Head to Testify
Gaspar said pyramid schemes Ever Operations and Braiscompany moved assets through Binance. Brazil’s Securities and Exchange Commission is also investigating Binance for offering derivatives without registration.
In response to the request, Binance affirmed it would help law enforcement. It said it previously helped the Federal Police investigating GAS Consultoria’s Bitcoin investment scheme and the company’s boss Glaidson Acácio dos Santos.
The company’s local head, Guilherme Haddad Nazar, served as Uber’s Brazil head before joining Binance in September last year. He is the nephew of Brazil’s Finance Minister, Fernando Haddad.
The summons must acquire a majority vote from the inquiry committee, which meets on June 27.
Brazil is the largest crypto market in Latin America and the seventh-largest in the world. Binance offers a crypto-linked card in the region. Regulators forced it to withdraw its futures trading products in 2021.
Strategist Samson Mow said Peru and Ecuador could soon follow El Salvador in making Bitcoin legal tender.
Binance US Denies Commingling Allegations
Binance faces legal action from regulators in the US and recently exited the UK, Canada, and the Netherlands after failing to meet the requirements necessary for a license.
Conversely, the exchange recently secured a license to operate a regulated exchange in Kazakhstan.
The US Commodity Futures Trading Commission has sued Binance for illegally granting US firms access to its over-the-counter trading desk.
The US Securities and Exchange Commission has said the exchange offered unregistered securities while mishandling customer funds. Meanwhile, France is also investigating Binance for “aggravated money laundering.”
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The exchange’s US arm filed papers arguing the US Securities and Exchange Commission could not prove it abused customer funds.
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