Binance Troubled In Brazil With Allegations Of Using Pyramid Scam

Key Points:

• Guilherme Haddad, the Director of Binance Brasil, was summoned before the Brazilian parliament by Congressman Alfredo Gaspar.
• The proposal will be voted on by other CPI members on June 27.
• Gaspar claims that pyramid schemes exploited the exchange to facilitate asset transfers and feels it is critical to comprehend Binance’s performance in the nation.

According to the news site Portal do Bitcoin, Congressman Alfredo Gaspar, a member of the Financial Pyramids Parliamentary Panel of Investigation (CPI), has demanded that Guilherme Haddad, the Director of Binance Brazil, come before the Brazilian parliament.

This request made public on Wednesday, June 21, is part of an ongoing inquiry into suspected pyramid scams in the nation. The deputy’s request must still be voted on by the other members of the CPI. The summoning vote will be held on June 27.

Guilherme Haddad, the CEO of Binance Brazil since late 2022, has been connected to his uncle, Fernando Haddad, Brazil’s current Minister of Finance. Nonetheless, Honorato believes that the connection should have no bearing on the probe.

Additionally, the deputy states that pyramid schemes such as Ever Operations and Investments and Braiscompany used Binance to assist asset transfers. He stated:

“Therefore, we can deduce that Binance is entirely intertwined with the motivation of this CPI, and it is essential to understand its performance in the country, its relationship with B Fintech (its official representative), as well as its connection with companies that respond in court for harming consumers Brazilians.”

Haddad will face the Brazilian House of Deputies, the lower chamber of Congress if the vote is passed. This announcement comes in the midst of a large-scale, worldwide regulatory crackdown on the world’s biggest cryptocurrency exchange. Binance has attracted the attention of authorities in the United States, France, the Netherlands, the United Kingdom, and Brazil.

Officials in the South American country also said that the summons is being issued because the corporation is under inspection from authorities all around the globe. Binance is also being investigated in Brazil for supplying derivative market goods without authorization, which started in 2020.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News