Binance’s legal woes intensify as Brazil lawmaker seeks to question general manager

Binance’s legal woes intensify as Brazil lawmaker seeks to question general manager

Jun. 22, 2023

By Jacob Oliver

Former prosecutor-turned-lawmaker Alfredo Gaspar has called upon the legislature to summon the company's Brazilian general manager to appear in order to "provide clarifications."

Binance, already under regulatory fire in jurisdictions worldwide, is seeing its legal pressures exacerbated in Brazil, where lawmaker Alfredo Gaspar has formally requested that the National Congress compel Guilherme Haddad Nazar, General Manager of Binance Brazil, to appear for questioning.

In a formal request addressed to the Parliamentary Commission of Inquiry into Pyramid Schemes, Gaspar called upon the commission to Summon Mr. Nazar to “provide clarifications regarding the company’s operations in cryptocurrency management… and possible partnerships with national companies involved in financial services associated with cryptocurrencies.”

As justification, Gaspar cited the U.S. Securities and Exchange Commission’s civil suit against Binance Holdings, Ltd. and its affiliates for several allegations of securities law violations. He also cited the Brazilian Securities and Exchange Commission’s decision to reopen an administrative proceeding against Binance and its Brazilian representative, B Fintech, while a São Paulo court froze 500,000 Brazilian Real from Binance due to suspicions of operating a pyramid scheme.

Gaspar also noted that Binance or one of its affiliates faced similar inquiries in Japan, China, Germany, and the United Kingdom, writing, “A common thread in these cases is the company’s failure to comply with the regulations imposed by each country.”