- Binance Brazil’s exchange is accused of using pyramid schemes
- The director of Binance Brazil may be summoned to testify before Parliament
- Binance officials have not yet commented on the situation
The cryptocurrency exchange Binance Brazil is facing an audit by Brazilian regulators. Alfredo Gaspar, congressman and member of the parliamentary commission of inquiry into pyramid schemes, demands that Guilherme Haddad, head of Binance Brazil, be invited to testify before the Brazilian parliament. The report is part of an investigation into financial pyramid schemes now underway in the country.
For Haddad to be subpoenaed, other members of the parliamentary committee must vote. A vote on the subpoena will take place 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.
“Consequently, it is extremely important to understand Binance’s activities, its connection to B Fintech and its involvement in companies that are being sued for harming Brazilian consumers, as this closely ties Binance to the ongoing investigation,” Gaspar said.
The Brazilian authorities also said that the intention to subpoena the company is linked to inspections by regulators worldwide. Binance has faced scrutiny from authorities in the U.S., France, the Netherlands, the U.K., and also had its license revoked in Cyprus.
The exchange has previously faced difficulties in the country. In early April, the Brazilian Securities and Exchange Commission (CVM) filed a complaint against Binance with the São Paulo State Prosecutor’s Office. They found “evidence of crimes” on the part of the crypto-exchange.