Congressman Alfredo Gaspar issued a formal request for Guilherme Haddad, CEO of the Brazilian subsidiary of Binance, to testify before the Parliamentary Investigation Commission (CPI) that is examining more than 200 pyramid schemes that have left thousands of victims in the last 5 years. the country.
Gaspar directed application to the president of the ICC, Áureo Ribeiro, explaining that Binance must clarify its relationship with some Brazilian companiesamong them B Fintech Servicos de Tecnologia Ltda. This is due to suspicions that it is part of the same economic group.
Binance previously denied having any close relationship with B Fintech Servicos de Tecnologia Ltda.
However, in court they have taken sufficient evidence and judicial decisions have been taken that point to the contrary, which is part of the concerns of the congressman who requests further clarification from the representative of the cryptocurrency exchange.
In his request, Gaspar mentions that last March “the Sao Paulo court blocked 500,000 Brazilian reais from Binance due to suspicions of operating together with pyramid schemes.”
On this occasion and on others, the exchange has been involved in lawsuits that also involve Brazilian companiessomething about which Gaspar believes it is necessary to put the magnifying glass and request clarifications.
“We can deduce that Binance is totally intertwined with the motivation of this CPI and it is essential to understand its performance in the country, its relationship with B Fintech (its official representative), as well as its relationship with companies that are legally liable for harming Brazilian consumers. ”.
Alfredo Gaspar in his call request to the CEO of Binance in Brazil.
The call to the CEO of the Brazilian subsidiary of Binance will take place if the majority of the members of the parliamentary commission agree. For that reason the petition will be put to the vote next Tuesday, June 27.
If the motion passes, Haddad will face Brazil’s Chamber of Deputies, which is the lower house of Congress.
Pyramid schemes with cryptocurrencies under the magnifying glass of Congress
On June 13, the Brazilian Parliament installed the ICC with the main objective of examining the dynamics of cryptocurrency pyramid schemes.
The mission of the commission of inquiry is understand what has allowed more than 200 pyramid schemes to emerge in Brazil in the last five years. The next step will be to improve the legislation to curb this type of crime.
It is noteworthy that this week the Brazilian Cryptocurrency Law entered into force, which inserts fraud involving the use of digital assets in article 171 of the Penal Code, which typifies theft, and provides for a penalty of four to eight years in prison, in addition to a fine for those who commit these crimes.
In any case, Brazil is not the only country where Binance is under scrutiny from regulatorssince it was also sued by the United States Securities and Exchange Commission (SEC), for trading unregulated securities.
Likewise, the cryptocurrency exchange is under investigation in France, where it is flagged for failing to implement KYC procedures (Know Your Client) and allow aggravated money laundering.
Regarding the possible call to the Brazilian Congress, Binance noted in a statement “that all exchanges and financial institutions related to the issue of the commission must participate in the ICC.”
The company also said it has been helping authorities with investigations and victims to get their money back.
He cited as examples the support provided to the Brazilian Federal Police in the investigation of the scam created by Glaidson Acácio dos Santos (known as Bitcoin Pharaoh) in 2021, which included the freezing of his accounts and the identification of money flows on platforms. around in the world