Brazil’s Congress puts Binance CEO CZ in crosshairs for indictment
A Brazilian congressional committee has recommended local law enforcement move to indict Binance CEO Changpeng “CZ” and three other Binance executives following a probe into financial pyramid schemes in Brazil.
On Oct. 10 the committee released a 500-page final report accusing Zhao and local Binance executives Daniel Mangabeira, Guilherme Haddad Nazar and Thiago Carvalho of fraudulent management practices, operating without sufficient authorization and offering securities trading without authorization.
In the report, the committee — led by deputy Ricardo Silva — claimed that Binance, Zhao and others “set up an opaque network of legal entities, all controlled directly or indirectly by Zhao, without defined business purpose and with no other purpose than evading compliance with the law.”
The report also recommended the indictment of 45 other people citing “strong evidence” of alleged participation in criminal schemes, with those named linked to multiple crypto companies, including the travel firm 123milhas, the crypto scheme 18K Ronaldinho and others.
Silva wrote that with Binance being accused of regulatory non-compliance in numerous other jurisdictions, in Brazil, Binance’s operations were “surrounded by suspicion.”
The committee recommended the Federal Public Ministry launch an investigation into all of Binance’s Brazil-based operations with a specific focus on tax evasion, money laundering and the financing of organized crime and terrorism.
Additionally, the committee recommended Brazil’s Securities and Exchange Commission (CVM) launch an investigation into Binance’s sale of derivatives products.
The committee claimed that despite being told to cease derivatives products trading, Binance continued to offer them, which constituted a “repeated violation” of market regulations. Binance is already under investigation by the CVM for allegedly illegally offering derivative products in the country.
The committee’s recommendations are not legally binding and are suggestions to local authorities. Police and other regulatory bodies will decide whether or not to move ahead with further action.
Binance told Cointelegraph that it “remained committed” to collaborating with the committee and local law enforcement in Brazil.
Related: Brazilian securities regulator plans sandbox for tokenization in 2024
Binance said while it welcomed constructive debate about the challenges facing the crypto industry, it “strongly rejects the exposure of our users or employees with baseless accusations of bad practices and the attempts to make Binance a target.”
The regulatory hostility against Binance comes amid a broader crackdown on the exchange by authorities elsewhere.
In the United States, Binance is staring down two separate lawsuits from the local commodities and securities regulators, which allege that Binance and its top executives violated numerous financial regulations.
In July, Australia’s financial regulator searched Binance Australia’s offices after having its derivatives license stripped months prior. In May, Binance made an exit from Canada citing the country’s new regulatory controls.
Magazine: Blockchain detectives — Mt. Gox collapse saw birth of Chainalysis
Care providers have warned the government that the UK social care system is “at breaking point” as it struggles with rising demand and high costs.
It comes as thousands of care and support providers, and some of those who rely on the service, plan to stage a demonstration in central London to urge the government to give more support to the ailing sector.
The planned rise in National Insurance contributions for employers combined with the increase in the national minimum wage, set to come into effect in April, could lead to some providers going out of business, according to Providers Unite, a coalition of social care organisations campaigning for long-awaited social care reform.
Research by the independent think tank The Nuffield Trust estimates that the rises, announced by Chancellor Rachel Reeves last October, could cost the sector an extra £2.8bn a year.
Rachel Reeves announcing the rise in NI contributions for employers in October
The government has already announced an additional £600m to help support the social care sector.
But the chair of the National Care Association, Nadra Ahmed, said the proposed increases will cancel out that government support.
“It is inconceivable that politicians fail to understand that a lack of investment will impact heavily on both the NHS and local government,” she said.
“It is this lack of recognition or investment which has led to a watershed moment at a time when the need for our services continues to grow. The sector is at breaking point.”
Ms Ahmed said increased costs had not kept pace with funding levels and warned some care providers could end up bankrupt.
Jane Jones, owner of Applewood Support, a homecare provider in Nuneaton, Warwickshire, said her costs will rise by and estimated £6,000 a month when the National Insurance rise comes into force.
Jane Jones, the owner of Applewood Support
“I felt sick when I heard the chancellor announce the rise in NI,” she told Sky News.
“It’s not feasible. I’ve had to make cuts in the office. We’ve got rid of two personnel because we just can’t afford it. It’s an attack on growth.”
The care sector employs nearly two million workers and supports more than 1.2 million people.
Pensioners Shiela and Paul Banbury have been married for 59 years and rely on Applewood to care for 82-year-old Sheila at home after she was diagnosed with Alzheimer’s in 2018.
Sheila Banbury relies on carers to live with her husband Paul
Paul Banbury
Paul, 77, says if they could not get home care Shelia would have to move into a care home.
“It would be very difficult after such a long time together. We want to be able to stay together in our home.”
Most care providers receive a fixed price for care, set by local councils. That means that rises elsewhere in the system are difficult to manage.
“We cannot increase our costs like the supermarkets can and are limited to what the government and councils can pay us,” says Ms Jones.
“So if they can’t pay us the right amount of money, we’re just going to go close our doors. And I think that’s what’s going to happen come April.”
Mike Padgham, chair of The Independent Care Group, urged the chancellor to review her budget measures and make care providers exempt from the National Insurance rise in the same way that the NHS is.
“We have suffered for more than 30 years and enough is enough. People who rely on social care and those who deliver it deserve better,” said Mr Padgham.
The government has published plans to reform the social care system, aiming to establish a National Care Service designed to bring it closer to the NHS.
Health and Social Care Secretary, Wes Streeting, announced the formation of an independent commission, chaired by Baroness Louise Casey, to develop comprehensive proposals for organising and funding social care.
Upbit emphasized that the FIU’s sanctions “may be subject to change” through procedures in accordance with relevant regulations.
The directors of the Securities and Exchange Commission’s regional offices will reportedly be soon out of a job as the agency looks to cut costs.
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