A special congressional committee investigating cryptocurrency pyramids known as the CPI officially concluded this week with a scathing report urging the indictment of four Binance executives. The alleged crimes include fraudulent management, operating an unauthorized financial institution and crimes against the the financial system, among others.
The individuals in question include:
Changpeng “CZ” Zhao, Binance CEO
Guilherme Haddad Nazar, Binance Brasil Director General and nephew of current Finance Minister Fernando Haddad
Daniel Mangabeira, Director of Institutional Relations for Latam
Thiago Sarandy de Carvalho, Senior Counsel for Latin America
The committee asserted that Binance was a willful channel for crypto pyramid scheme operators in Brazil to launder investor funds out of the country. Its final report argues that the exchange was the common denominator across many of these schemes, which are believed to have resulted in the loss of R$100 billion (US$20 billion) worth of Brazilian investor funds since 2017.
This is highly significant because Brazil has been one of Binance’s 2-3 largest markets globally for the last several years.
To help us better understand the committee’s recommendations and next steps, I invited Portal do Bitcoin reporter Fernando Martines and Mercado Bitcoin executive Daniel Cunha to the show.
I will have more information about the CPI and Binance situation in this week’s newsletter, but in the meantime I highly recommend having a listen to this episode to understand
I hope everyone has a great holiday weekend.