- The stock exchange is accused of using financial pyramids
- Binance Brazil directors may be called to testify in parliament
- So far, company officials have not commented on this situation.
Cryptocurrency Exchange Binance Brazil faced with Brazilian regulatory scrutiny. Alfredo Gaspar, a congressional representative and a member of the parliamentary commission investigating financial pyramids, demands that Guilherme Haddad, the head of Binance Brazil, be invited to testify before the Brazilian parliament. This message is part of an investigation into financial pyramids, which is currently ongoing in the country.
In order for Haddad to be summoned to court, other members of the parliamentary commission must vote. The vote on the subpoena will take place on June 27.
In his statement, the congressman wrote that Binance used pyramid schemes such as Ever Operations and Investments and Braiscompany to facilitate the transfer of assets.
“Therefore, it is extremely important to understand the activities of Binance, its connection with B Fintech and its involvement in companies that are being sued for harming Brazilian consumers, as this ties Binance closely to the ongoing investigation.” Gasper said.
The Brazilian authorities also said that the intention to take the company to court is related to checks by regulators around the world. Binance has faced scrutiny from the US, France, the Netherlands, the UK, and canceled the license in Cyprus.
Previously, the exchange has already faced difficulties in the country. In early April, the Brazilian Securities and Exchange Commission (CVM) filed a complaint against Binance with the Sao Paulo state prosecutor’s office. They found “evidence of crimes” from the crypto exchange.