Unauthorized trading of securities, Brazilian parliamentary committee recommends prosecuting Zhao Changpeng and three top executives of Binance.

According to a report by Bloomberg, the Brazilian congressional committee has recommended charging Binance CEO Changpeng Zhao and three other company executives, but a Binance spokesperson seemed to suggest this was a deliberate attack orchestrated in the regulatory realm.

Binance Rejected Settlement Proposal

The committee, made up of 28 lower house representatives, also suggested that the Federal Prosecutor's Office review Binance's tax compliance specifics and urged the Brazilian Securities and Exchange Commission, CVM, to investigate Binance's derivative sales activities.

In August, the Brazilian Securities and Exchange Commission rejected a 2 million Brazilian real (approximately $39,580) settlement proposal from Binance's Brazil executives, potentially leading to further investigations into Binance.

The committee leveled the following accusations:

• Fraudulent management

• Unauthorized issuance or trading of securities

• Operating as a financial institution without authorization

Bloomberg noted that the committee can only make recommendations, and it will be up to the Brazilian authorities to decide whether to pursue charges.

Binance: Actively Cooperating with Brazilian Committee

Binance appears to suggest that this is a deliberate regulatory attack.

A Binance spokesperson told Bloomberg:

We have made every effort to actively cooperate with the committee, but given Binance's leading position in Brazil and globally, we strongly reject any attempt to target Binance in any competitive dispute, even accusing Binance users and employees of misconduct without any evidence.