Following the trend of investigative action against the exchange, Binance has denied allegations that have led Brazil’s Congress to seek an indictment on the company’s top executive. Indeed, a brand new report from the country has laid out the recommendations for indictments against CEO Changpeng Zhao and other members of the company’s top brass.
Led by Congressional deputy Ricardo Silva, the country is seeking increased investigative action against the company. However, this investigation would take place separately from an ongoing investigation into Binance that is in place by the country’s local regulator, CVM.
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Brazil Seeks Binance Indictment as Firm Responds
The year thus far has been a tumultuous one for one of the largest digital asset companies in the world. Binance has seen a lot of regulators from different regions question its ongoing operations. From the United States to the UK, the company has had to fend off inquiries from all sides. Now, that list of countries is set to increase.
Recently, Binance has denied allegations set forth by Brazil’s congress, as they seek out indictments. Specifically, the country is singling out the company’s CEO Zhao. Additionally, they have noted interest in top Binance Brazil executives such as Thiago Carvalho, Daniel Mangabeira, and Guilherme Haddad Nazar.
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The report notes these individuals as the potential subjects of investigations. Specifically, the indictment is connected to unauthorized financial practices, including unauthorized securities trading. Moreover, the executives are accused of questionable management practices.
The report states that Binance “set up an opaque network of legal entities, all controlled directly or indirectly by Zhao, without defined business purposes and with no other purpose than evading compliance with the law.”
Subsequently, Binance has responded by denying all allegations. Specifically, Bloomberg noted comments from a spokesperson for the company. They state that they collaborated with the committee, and reject the allegations made. Moreover, they express claims of bad practices to be without proof.