A Brazilian congressional committee has recommended the indictment of Binance founder Changpeng Zhao and three other senior executives for various charges, including fraud, illegal securities trading, and operating without the required licenses. The recommendations stem from a 509-page report following a congressional investigation into fraud within the digital asset industry in Brazil. The report accuses Zhao, along with Daniel Mangabeira, Guilherme Haddad Nazar, and Thiago Carvalho, of operating within Brazil without proper licenses and engaging in fraudulent management practices.
The committee is not authorized to issue indictments itself but has referred its recommendations to Brazil’s Federal Police, Federal Revenue Department, and Federal Public Ministry. In total, the report recommends indictments against 45 individuals and urges the country’s securities regulator to investigate Binance’s derivatives products.
Binance has faced legal challenges and investigations in several countries, including the United States, France, the United Kingdom, Canada, and the Netherlands. Brazil has recently taken measures to curb criminal digital asset activities within its borders, including the introduction of the Legal Framework for Virtual Assets in Brazil, which establishes licensing requirements and legal definitions for digital asset terms. The report alleges that Binance employees may face indictments for assisting citizens in bypassing geoblockers to access the platform, potentially resulting in prison sentences of up to two years.
Binance has consistently denied wrongdoing and claimed unfair targeting by regulators, despite increasing legal challenges worldwide.
By FCCT Editorial Team
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