• The Brazilian Securities and Exchange Commission has informed the prosecutor’s office that Binance may have violated a “stop order” by continuing to offer cryptocurrency derivatives.
• The Public Prosecutor’s Office and Federal Police are investigating Binance for alleged financial crimes, such as instructing users to change the website’s language to access the derivative platform Binance Futures.
• If found guilty, those responsible could face six months to two years in prison.
Binance Investigated for Alleged Financial Crimes in Brazil
CVM Alleges Violation of “Stop Order”
The Brazilian Securities and Exchange Commission (CVM) has informed the Attorney General’s Office that Binance may have violated a “stop order” by continuing to offer cryptocurrency derivatives. This led the Public Prosecutor’s Office and Federal Police to investigate Binance for alleged financial crimes. CVM alleges that the exchange instructed users to change the website’s language to access its derivative platform Binance Futures, which could potentially violate Brazilian law.
Evidence Provided Through Support Screens
CVM provided evidence through “prints” from Binance support screens to support its claims. Filipe Batich, a partner in Madrona Fialho Advogados’ compliance area, said that the existence of this “stop order” shows that someone intended to commit a crime of irregular exercise of value market activities. Therefore, from a criminal point of view, an employee who gave guidance on how to circumvent restrictions placed by CVM would be responsible for any violations found.
Investigation Initiated in 2020
Administrative proceedings against B Fintech Serviços de Tecnologia were initiated by CVM since 2020 due to suspicions regarding potential violations committed by Binance. The police will look for the official who gave this instruction if there was indeed a crime committed and they could face up to two years in prison if found guilty.
Conclusion
Binance is currently being investigated by both the Public Prosecutor’s Office and Federal Police for suspected financial crimes in Brazil due to their alleged violation of “stop orders” issued by CVM concerning their offering cryptocurrency derivatives via their website without proper authorization or regulation. Those responsible could face up six months up two years in prison if found guilty after investigation is completed.