Director of Binance Brazil Summoned in Court: Details
- The director of Binance Brazil, Guilherme Haddad, has been summoned by Deputy Alfredo Gaspar.
- Gaspar has been requested to appear before the Brazilian Parliament due to an ongoing CPI investigation.
- Gaspar claimed that the exchange was used by pyramid scheme orchestrators to process their funds.
The director of the Brazilian arm of the world’s largest crypto exchange, Binance, Guilherme Haddad, has been summoned by Deputy Alfredo Gaspar, a member of the Brazilian Chamber of Deputies. This is one of the many issues that the leading crypto exchange is facing around the globe, and it seems that the Changpeng Zhao-led firm’s troubles are far from over.
It is crucial to note that the director of Binance Brazil has been requested to appear before the Brazilian Parliament due to an ongoing Parliamentary Commission of Inquiry (CPI) investigation that stems from alleged pyramid schemes in the largest country in South America. Moreover, the request filed on June 21 will be voted on by the members of the CPI on June 27.
As per a report from local media outlet, Portal do Bitcoin, if the vote is passed by the CPI, the Binance Brazil director will be required to be present before the Brazilian Chamber of Deputies, the lower house of the National Congress of Brazil. In his request, deputy Gaspar claimed that the exchange was used by pyramid scheme orchestrators to process the funds generated via their schemes.
“Hence, it is vital to understand Binance’s operations, its association with B Fintech, and its involvement with companies facing legal action for harming Brazilian consumers, as this strongly links Binance to the ongoing investigation,” said the deputy.
Authorities also mentioned the fact that the reason for the summons is also related to the leading crypto exchange being investigated by regulators around the world. As reported earlier by Bitnation, Binance is also being investigated by the Federal Prosecutor’s Office and Federal Police in Brazil for enabling clients to evade a stop order.
A report confirmed that the Brazilian Securities and Exchange Commission (SEC) imposed a stop order on derivatives offerings in 2020, but the leading exchange helped clients evade the order. However, it was also announced recently that the Brazilian partner of Binance, Latam Gateway, was also licensed to operate as a payment institution in the country. The two firms have been working together since June 2022, when Latam Gateway ended its partnership with Capitual.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
