After filing a lawsuit for defamation of character against Forbes three months ago, Binance has taken down the legal action. The exchange sued the highly acclaimed news platform for allegedly reporting false claims at a New Jersey Court in November last year.
The story originated from Forbes journalist Michael Del Castillo, helped by Jason Brett. Binance called for the controversial article to be taken down while demanding for ‘damage control’ settlements. According to the story, the exchange was allegedly using back channels to earn profits behind US financial regulators.
The allegations’ backbone came from a source known as the Tai Chi document, an entity that the story claimed to be a Binance-based corporate blind spot for the US financial watchdogs. Changpeng Zhao, the exchange’s CEO, disputed the claims saying Binance entities follow financial regulations to the letter.
Binance Confuses Crypto Journalists
To date, CZ has succeeded in hiding the whereabouts of Binance’s headquarters. Despite the push by journalists, Mr. Zhao has never revealed his firm’s main office location, sparking quite a few theories, one of them came in the form of the Tai Chi document.
The reason behind dropping the Charges against Forbes is still unknown, but the business publication remains adamant about the story against Binance. According to a press release by Binance lawyer Charles Harder, Forbes misinterpreted the document. The PR states that the document was merely a third party proposal and not by the exchange itself.
According to Forbes, the Tai Chi document shows how Binance will set up an unnamed Entity to confuse financial regulators with false corporate talk while moving profits regarding licensing fees to the parent company. The journalists also claim that Mr. Zhao had viewed the document in 2018. Nevertheless, the source of the document has been a name only mentioned behind closed doors.
The Blue vs. Red Corner
Although Binance has dropped the lawsuit, the case could come up again since Forbes has refused to plead guilty. Binance previously summoned the publication to apologize, but it was a case of speaking to the wind. Forbes Chief Communications Officer Mathew Hutchison said, “We stand by our reporting.”
Changpeng Zhao termed the whole fiasco as FUD in a tweet that further said anyone could forward such a document, and it does not mean Binance will use it. Forbes suggested that the document has spread to several outlets, and Binance ‘might be’ under investigation by federal authorities such as the FBI and IRS.