Changpeng Zhao’s cryptocurrency exchange Binance has sued Forbes Media over a misleading article. The world’s largest digital currency exchange in terms of trading volume had filed a defamation lawsuit against Forbes Media and two of its reporters on Wednesday. The lawsuit was filed over a leaked Tai Chi Document in the United States District Court in New Jersey.
Alongside the American business magazine Forbes Media, two of its writers that have been sued by the Binance exchange are Jason Brett and Michael del Castillo. These are the two journalists who had written down the article under the title of “Leaked ‘Tai Chi’ Document Reveals Binance’s Elaborate Scheme To Evade Bitcoin Regulators”. The article basically focused on unveiling the “corporate structure” developed by the cryptocurrency exchange for deceiving or avoiding regulatory authorities of the United States.
In its lawsuit complaint, Binance has called this article defamatory saying that the content included in this article is completely misleading. The exchange said that all of the statements made in the article regarding Binance are totally false and defamatory.
Moreover, the cryptocurrency exchange has said in the complaint that these false statements and misleading information about Binance has resulted in the loss of millions of dollars in material damages.
Binance’s lawsuit complaint reads:
“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 is now asking for both punitive as well as compensatory damages. In a letter sent to the defendants, the company has asked for an apology for publishing this defamatory article. It has also demanded Forbes to remove this article as well.
As per the story presented by Forbes, Binance’s former employee Harry Zhou had created this document. Harry Zhou is also said to be the San Francisco-based digital currency exchange Koi Trading’s co-founder as well. However, Binance has refused to admit Harry Zhou as its employee saying that he had never worked for the exchange.
Moreover, the exchange has also provided a clearance over the rumors presented in the article. The company said in the filing that it did not violate regulations and it shows full compliance with the rules and regulations.