Wow, Brazil's Congress Accuses Binance Of Cheating!

JAKARTA - The Brazilian Congress Committee has made serious accusations against Binance's leading crypto exchange platform. They accused Binance of involvement in fraudulent financial pyramid schemes, as well as violating Brazilian regulations. Binance CEO Changpeng Zhao (CZ), also said to have hidden motives in establishing several companies in Brazil.

The Brazilian Congressional Committee has recommended legal action against three key figures related to Binance. They are Changpeng Zhao CEO, Brazil's General Director Guilherme Haddad Nazar, and Latin American Director of Institutional Relations, Daniel Mangabeira.

In its allegations, the committee also revealed that Binance made transactions worth US$791.7 million (Rp12.4 trillion) to pass Brazil's regulator. They note that "Binance moved BRL 40 billion in 2021 without Acesso, the authorized institution, has control over who it subscribes to and whether the origin of the funds is legal."

However, it is important to note that these allegations are still in the recommendation stage of the Brazilian Congressional Committee, and are now the responsibility of the Brazilian police to determine the next steps.

In addition, a comprehensive report published by the committee is in detail investigating signs of questionable practices in business management linked to cryptocurrencies.

The report also notes that Binance CEO Changpeng Zhao allegedly founded several companies in Brazil as an attempt to circumvent compliance with local financial regulations.

The Brazilian committee stated that "Changpeng Zhao, establishing an unclear network of legal entities, all of which are directly or indirectly controlled by Zhao, with no clear business goals and with no other purpose other than avoiding compliance with the law."

The committee argues that this lack of oversight is causing a wide range of problems, with the most prominent being the exploitation of crypto exchanges in pyramid schemes. The report also refers to statements allegedly made by Binance's chief compliance, which claims that the company aims to circumvent regulatory action in any way.

This is not the first time the CEO of Binance CZ has been in the spotlight of regulations in various countries. Some US regulators have even blamed CZ for the fall of the FTX crypto exchange. They claim that the CZ tweet before the fall of the exchange caused uncertainty in liquidity and financial stability, which ultimately led to the collapse of the exchange.