Brazil’s largest cryptocurrency exchange, Binance, is under intense scrutiny by Brazilian authorities over its alleged involvement in facilitating financial pyramid schemes.
Alfredo Gaspar, a member of the Brazilian Chamber of Deputies, has submitted a request to summon Guilherme Haddad Nazar, the director of Binance Brazil, to testify before the Brazilian Parliament. The request is part of a Parliamentary Commission of Inquiry (CPI) investigation into alleged pyramid schemes in the country.
Nazar, who assumed the position of Director-General of Binance in Brazil in late 2022, is also a nephew of the current Minister of Finance, Fernando Haddad. The request to summon Nazar is due to be voted on by members of the CPI on June 27.
Deputy Gaspar justified the request by pointing out that Binance has been facing regulatory issues in multiple jurisdictions, including the United States, Japan, China, Germany, the United Kingdom, and Brazil.
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In Brazil, in particular, Binance is being investigated by the Securities and Exchange Commission and the Federal Prosecutor’s Office for allegedly helping clients evade a stop order on cryptocurrency derivatives investments.
Gaspar further noted that pyramid schemes Ever Operações e Investimentos and Braiscompany used Binance to transfer assets. This involvement with companies facing legal action for harming Brazilian consumers strongly links Binance to the ongoing investigation.
“It is vital to understand Binance’s operations, its association with B Fintech, and its involvement with these companies,” stated Gaspar.
The developments in Brazil underscore international attention on the cryptocurrency exchange and come amid a global regulatory crackdown on Binance. As we continue to monitor this story, the implications for Binance’s operations in Brazil and globally remain unclear.
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