Binance and CZ Faces Huge Accusations in Brazil
Binance and its leader, CZ, face claims of bad business in Brazil and the U.S., with links to a big fraud.
In Brazil, a government group is saying that Binance, a big company in the cryptocurrency world, and its leader, Changpeng "CZ" Zhao, did wrong things with their business. They believe Binance was part of a big fraud called a "pyramid scheme," led by a man named Glaidson Acácio dos Santos, who used tricks to take people’s money.
The group shares that Binance moved a lot of money, about $791.7 million USD, in Brazil and did not tell the local rule-makers about it. The company "Binance moved BRL 40 billion in 2021" and did not check if the money was coming from good or bad places. Binance CEO, CZ, is also said to have made many companies in Brazil that he started to avoid following local money regulations, and this helped them perform shady and bad activities, like using the company in a pyramid scheme.
They also pointed to a statement from a top executive in Binance which proved they wanted to stay away from “following rules at all costs.” CZ often says his company is based wherever he is, which makes it hard for countries to make him follow their rules.
This news comes when CZ is having problems in the United States as well. People blame him for causing issues with another crypto company, FTX, by saying bad things about it online. He and Binance are also having a legal fight with the SEC, a big financial rule-maker in the U.S., for not being honest with customers about their U.S. platform. This story is still developing, and more information may come out later.
