“Brazilian Lawmakers Summon Heads of Major Crypto Exchanges for Parliament Inquiry into Pyramid Schemes”
Brazilian lawmakers have called upon the leaders of prominent cryptocurrency exchanges, including Binance, Bitso, and OKX, to testify before parliament. The summons is part of an investigation conducted by a special parliamentary commission focused on cryptocurrency-based financial pyramid schemes (known as the CPI). The commission has approved a list of 38 individuals who will be questioned by MPs, which includes alleged pyramid organizers, witnesses, and experts in the crypto field.
Lawmakers seek to enhance their understanding of cryptocurrencies and the functioning of crypto-related pyramid schemes, and they believe that the participation of crypto exchanges will provide valuable insights. Among those summoned are Guilherme Haddad Nazar, the head of Binance in Brazil, as well as representatives from Bitso, KuCoin, OKX, Coinbase, Liqi Digital Assets, Bitget, and Foxbit. Foxbit, in particular, has been working closely with the country’s Central Bank on its digital real project.
However, the focus of attention will also be on representatives from some of the largest suspected crypto pyramids and frauds in Brazil, including GAS Consultoria, Atlas Quantum, and Indeal. Indeal, which declared bankruptcy in February this year, is believed to have collected approximately $193 million from investors.
In addition to exchange representatives, the parliamentary inquiry has invited notable crypto advocates and experts, such as Fernando Ulrich, author of the book “Bitcoin: The Currency of the Digital Era,” which achieved mainstream success in Brazil as one of the first crypto-related publications. The well-known BTC bull Thiago Nigro, also known as Primo Rico, has been invited to provide insights into how the crypto market operates. Nigro’s company, Rico Investimentos, has been actively involved in the Brazilian Bitcoin market.
“Crypto Exchanges Summoned to Brazil’s Parliament as CPI Sets Next Steps”
“Brazilian Lawmakers Summon Big Tech and Media Outlets Over Crypto Scams”
In response to the escalating prevalence of crypto scams, the parliamentary commission for “cryptocurrency-based financial pyramid schemes” (CPI) in Brazil has issued calls for major technology companies and mainstream media organizations to appear before them.
Lawmakers are concerned that social media platforms, media websites, and television stations are not taking sufficient action to combat the growing number of cryptocurrency scams. They believe that certain media outlets are airing and publishing advertisements from crypto scammers and expect media leaders to take responsibility in addressing this issue.
Additionally, lawmakers believe that scammers are easily promoting their fraudulent projects on social media platforms. This has prompted the CPI to summon representatives from these platforms in an effort to address the ease with which scammers advertise their schemes.
The CPI aims to engage with big tech firms and media outlets to explore potential measures that can be implemented to tackle crypto scams and ensure the protection of consumers from fraudulent activities associated with cryptocurrencies.
Brazilian Lawmakers Struggle to Summon Tech and Media Leaders for CPI Inquiry
Despite their efforts, lawmakers have faced challenges in convincing the parliamentary commission for “cryptocurrency-based financial pyramid schemes” (CPI) to summon leaders from major technology and media companies. Lawmakers expressed their intention to call upon regional heads of Meta (the operator of Instagram, Facebook, and Whatsapp), Google, Telegram, TikTok, and Twitter. They also sought to engage with the heads of Grupo Bandeirantes de Comunicação, a prominent broadcast network, and Grupo Globo, the publisher of highly circulated newspapers in the country.
However, thus far, the CPI has postponed these requests, resulting in a delay in summoning IT and media leaders for testimony. The reasons behind the postponement remain undisclosed at this time. It remains to be seen whether lawmakers will eventually succeed in their attempts to have these industry leaders attend the CPI and provide insights into combating crypto scams and fraudulent activities associated with cryptocurrencies.