Cryptocurrency exchange Binance sues Forbes and its two reporters for publishing an article claiming the exchange is the involved in violation of crypto regulations.
Leaked ‘Tai Chi’ Document
Binance has filed a lawsuit against Forbes in District Court based in the District of New Jersey. According to the complaint registered by the exchange, the article of Forbes has reported false information about the exchange which is defamation. The article entitled “Leaked ‘Tai Chi’ Document Reveals Binance’s Elaborate Scheme To Evade Bitcoin Regulators” was written by Jason Brett and Michael del Castillo which are included in the Binance’s complaint registered in the US District Court.
According to Forbes’s article, the journalists have taken the facts from the document penned by Harry Zhou, the co-founder of Koi Trading. According to the revealed document, the firm has established the US subsidiary in order to evade US regulations and move revenue back to the parent platform by misleading the US regulators. According to Binance’s lawsuit:
“Defendants’ false public statements, misrepresentations and innuendo that Binance does not comply with applicable law, seeks to evade regulators, and is engaged in activity ‘characteristics of money laundering’ are highly damaging to Binance.”
Binance’s Demands in Complaint
After the news agency published the so-called false article about the exchange, Binance has lost “millions of dollars” as a result. Per the complaint, the crypto trading platform asked for an apology and removal of the article but Forbes did not bother to do that. In the filed lawsuit, the exchange has demanded money as compensation. But it may become hard for Binance to prove the defamation case in the US Court against the news outlet.
In the history of the US, there are very rare cases when the defamation cases against the US media took a serious phase. This is because the media has a lot of freedom, and government authorities do not pressurize them.
Crypto news outlet The Block published an article against Binance last year, and the exchange, as a result, threatened to file a lawsuit for defamation.