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Changpeng Zhao and other Binance executives facing possible indictments in Brazil
A Brazilian congressional committee has made the recommendation to indict Zhao and other for fraud and other securities violations; the decision to press charges now falls to the police.
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Updated: Oct. 10, 2023 at 11:05 pm UTC
Aevozer / CC BY-SA 4.0 / Wikimedia. Remixed by CryptoSlate
A Brazilian congressional committee has asked for Binance CEO Changpeng Zhao and three other company executives to be indicted, Bloomberg said on Oct. 10.
Following the committee’s recommendations, the decision to indict Zhao and the other company executives now lies with the Brazilian police.
The committee alleged that Zhao and the other executives have engaged in fraudulent management, offering or trading of securities without previous authorization, and operation of a financial institution without authorization.
The same congressional committee asked for Brazil’s securities regulator, Comissão de Valores Mobiliários (CVM), to investigate Binance’s continued derivatives sales following an earlier stop order. Related investigations began in April.
Bloomberg noted that the CVM rejected a 2 million reais ($396,000) settlement that Binance proposed in August. It said Binance now faces further fines and penalties.
Binance responds to allegations
Binance responded to the report by stating that it has made extensive efforts to work with the Brazilian congressional committee. The company said:
“[Binance] strongly rejects any attempts to make [it] a target or even expose its users and employees with allegations of bad practices without any proof, amid competitive disputes given the company’s leadership position in Brazil and in the world.”
Binance and its executives also face scrutiny from authorities outside of Brazil. In June, the U.S. Securities and Exchange Commission (SEC) filed charges against Binance, Binance.US, Changpeng Zhao, and related parties over alleged violations of securities law. The Commodity Futures Trading Commission (CFTC) has additionally charged Binance, while the Department of Justice (DOJ) is reportedly weighing charges as well.
Binance has also been under investigation by French authorities for more than a year, according to reports that emerged in June 2023.
Furthermore, Binance has left several countries in anticipation of regulatory challenges, including Russia, Canada, Singapore, and the Netherlands.
Mentioned in this article
Author 
Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
Editor Editor 
Jacob Oliver
Jacob Oliver is a recovering academic and English teacher turned crypto journalist and web3 writer. He holds a Ph.D. from the University of Washington.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.