Binance, a popular crypto exchange, has filed a lawsuit against Forbes and two cryptocurrency journalists for defamation following the Tai Chi document published by Forbes in October. According to the Tai Chi document, Forbes claimed that Binance formulated a corporate plan that allowed them to profit from the US markets while refusing to adhere to the country’s regulatory guidelines.
The lawsuit, which was filed in the US District Court in New Jersey, accused Forbes and two writers, Michael Del Castillo and Jason Brett, of damaging the exchange’s reputation. Binance also claims that the document contains several false, demeaning, and defamatory statements that pose a threat to their profile in the crypto space.
The exchange went further to disprove the authenticity of the leaked Tai Chi document by the media house. In the lawsuit, the exchange demands that Forbes take down the article and pay for destroying their reputation. However, the amount required for damages is still unknown as we await trial.
Binance and the Tai Chi document
So far, Binance remains one of the largest crypto exchanges in the world; hence this type of slander can ruin all that it has achieved over the years. Although Binance has sued other companies in the past, this is the first time it is having issues with a news company. The CEO of Binance, Changpeng Zhao, has also previously threatened to sue a crypto news outlet known as The Block.
In addition to that, a representative from Binance stated that the exchange supports freedom of the press and freedom of information. So the lawsuit against Forbes should not be seen as a threat to reporting on Binance. The spokesperson added that the exchange and other leading crypto companies need the media to keep them accountable and disseminate information to the public.
According to the Forbes article, Tai Chi disclosed that Binance had an exclusive corporate framework built to intentionally maneuver regulators in the US and profit from investors in the country.
The document also revealed that an unnamed US company dubbed the “Tai Chi entity.” The company operates in the US to distract regulators with false moves indicating compliance with crypto regulations. But they would be moving funds as licensing fees and more to the parent company, Binance. The exchange would also train customers on how to avoid geographic restrictions. All these efforts were to escape regulators as the US does not approve highly leveraged crypto-derivatives trading.