Brazil Central Bank appoints commission to probe Dank credit firm liquidation

The Banco Central do Brasil named two of its staff to a commission tasked with investigating the liquidation of Dank Sociedade de Crédito Direto, the first special credit entity (SCD) to be liquidated by the regulator. Dank was liquidated in March 2026. The commission has an initial period of 120 days to complete its work, extendable by another 120 days if necessary. Its mandate is to determine the causes of the firm’s failure and assess the responsibility of controllers and administrators over the five years preceding the liquidation. The inquiry can examine accounting records, documents, assets, and may summon testimony, request police assistance, and obtain information from public authorities, the Public Prosecutor’s Office, and the liquidator. Former administrators may monitor the inquiry, submit documents and provide written statements. Upon completion, the commission will issue a report detailing the entity’s condition, the reasons for its collapse, the assets of those involved, and any estimated losses. If no losses are found, the case will be archived; otherwise, the report will be forwarded to the appropriate bankruptcy court.