Binance Exec May Be Called to Testify in Brazil Over Alleged Pyramid Schemes

Binance logo on top of Brazil.

The Director of Binance Brazil, Guilherme Haddad, might be summoned before the Brazilian parliament over an investigation into the alleged pyramid schemes being run in the country. The request for summon was made today by congressman Alfredo Gaspar and will be voted next Tuesday.

According to a translation of the Brazilian news site Portal do Bitcoin, if the vote is approved, Haddad will face the Brazilian Chamber of Deputies, which is the lower house of Congress.

Today’s news comes amid a large-scale and multinational regulatory clampdown on the world’s largest crypto exchange. Binance has been in the spotlight of authorities in the United States, France, Holland, the United Kingdom, along with Brazil.

Authorities in the South American nation explained that the intent for summons is due to the fact the company is facing the above-mentioned scrutiny from regulators around the world. In Brazil, according to Portal do Bitcoin reporter Saori Honorato, Binance is also being investigated for offering derivative market products without authorization, an issue that began in 2020.

Binance did not immediately reply to a request for comment from Decrypt.

Guilherme Haddad has been Chief Executive Officer of Binance Brazil since late 2022, and has been linked to his uncle, Fernando Haddad, Brazil’s current Minister of Finance. To Honorato, however, the relationship should not affect the investigation.