Last month, renowned media publication Forbes made some major claims that Binance Holdings Limited devised a plan to deceive the regulators in the US and avoid regulatory scrutiny while continuing to profit from the US market with its Binance U.S. subsidiary.
Now, Binance has filed a lawsuit in the state of New Jersey against Forbes Media and two of its Journalists Michael del Castillo and Jason Brett, who authored the article, alleging that the report dubbed “Leaked ‘Tai Chi’ Document Reveals Binance’s Elaborate Scheme To Evade Bitcoin Regulators” was defamatory. The world’s number one cryptocurrency exchange by volume is now seeking both compensatory and punitive damages.
The article published on October 29, cited a leaked document acquired by Forbes, which alleges that Binance was funneling revenue via an unnamed US company, referred to as the “Tai Chi entity,” and even advised US customers to use a “strategic” virtual private network to bypass the regulatory agencies like the SEC in America.
Binance continues to deny allegations
According to Binance’s complaint filed Wednesday with the United States District Court of New Jersey, the exchange argues that “The Story contains numerous false, misleading and defamatory statements about Binance.”
Previously, a Binance U.S. spokesperson told The Daily Chain that the Company found no records of anyone at Binance.US receiving these alleged documents.
“We have no record of anyone at Binance.US ever receiving that alleged presentation. Furthermore, the Forbes article contains multiple inaccuracies that indicate that its claims are without merit,” the spokesperson wrote.
Now, the complaint continues to back this, adding that the company did not create the Tai Chi document and has never implemented schemes that are mentioned in this document. Binance also noted that Harry Zhou, the supposed author of the document, never worked for the company.
In its complaint, Binance includes this claim in a list of “false, misleading and defamatory statements.”
Furthermore, the complaint adds that the company has sent a letter demanding removal, retraction, and apology. However, the article is still live and also showcases an editor’s note stating that “Chief compliance officer Lim had previously sent an email to Forbes confirming that Zhou had been a Binance employee.”
Matt Hutchison, Chief Communications Officer for Forbes, said in a statement to Cointelegraph “We stand by our reporting.”However, this isn’t the first time Binance has battled a media outlet. Previously, Binance CEO and founder Changpeng Zhao had warned that the company would sue crypto media publisher The Block, over an article that alleged Binance office had been raided.