According to information published by Bloomberg on October 10, a Brazilian parliamentary committee has requested the prosecution of Binance CEO Changpeng Zhao and three other company executives.
As recommended by the committee, the decision to prosecute Zhao and other executives of the company now falls under the jurisdiction of the Brazilian police.
It is alleged by this committee that Zhao and other executives engaged in managing fraud, offering or trading securities, and operating a financial organization without authorization.
Another similar parliamentary committee has also requested that Brazil’s securities regulator, Comissão de Valores Mobiliários (CVM), investigate Binance’s continued offering of derivative products after a prior suspension order. These related investigations began in April 2023.
In August 2023, CVM rejected a 2 million reais (396,000 USD) settlement proposed by Binance. Currently, the exchange is facing fines and further penalties.
Regarding Binance, the company states that they are working to cooperate with the Brazilian parliamentary committee.
However, not only the company but also its executives, including founder CZ, are facing scrutiny from regulatory authorities outside Brazil.
In June 2023, the U.S. Securities and Exchange Commission (SEC) filed a complaint against Binance, Binance.US, Changpeng Zhao, and related parties over allegations of securities law violations.
The Commodity Futures Trading Commission (CFTC) has also added charges against Binance, and the Department of Justice (DOJ) is reportedly considering additional charges.
Simultaneously, Binance has been under investigation by the French authorities for over a year. Furthermore, Binance has posed legal challenges for several countries, including Russia, Canada, Singapore, and the Netherlands.