Binance has recently filed a lawsuit against Forbes, a well-known US-based media. The lawsuit is rooted in a report released by the media outlet over the article titled “ Leaked ‘Tai Chi’ Document Reveals Binance’s Elaborate Scheme To Evade Bitcoin Regulators”. The said article was claimed to be defamatory and misleading by Binance causing the exchange “millions of dollars” in losses.
An excerpt from the article states:
“Binance Holdings Limited, the world’s largest cryptocurrency exchange conceived of an elaborate corporate structure designed to intentionally deceive regulators and surreptitiously profit from crypto investors in the United States”
The article was written by Forbes staff writer Michael del Castillo and additional attribution from Jason Brett. Both were included in the lawsuit filed against Forbes.
The article further elaborates on the “Tai Chi” document :
“The leaked Tai Chi document, a slideshow believed to have been seen by senior Binance executives, is a strategic plan to execute a bait and switch. While the then-unnamed entity set up operations in the United States to distract regulators with feigned interest in compliance, measures would be put in place to move revenue in the form of licensing fees and more to the parent company, Binance. All the while, potential customers would be taught how to evade geographic restrictions while technological workarounds were put in place.”
Binance demanded from Forbes for compensatory and punitive damages as well as for the article to be taken down. It also asked for an apology from the media company.
Binance’s attorney, Charles J. Harder, states: “Forbes’ misleading story has done great harm to Binance’s reputation. Binance demanded Forbes’ retraction or correction, but it has refused. This lawsuit, therefore, became necessary. Binance intends to see this lawsuit through to the end, to ensure the truth and protect its reputation.”
But when reached out for comment, Forbes Chief Communications Officer Matthew Hutchison said that they stand by their reporting.
Binance is the largest cryptocurrency in the world in terms of trading volumes as of January 2018. It has braced the news recently after releasing the 200K bounty for investigators in the 2018 unsuccessful phishing attack on its platform. It has also launched its own Ethereum mining pool and currently owns a Bitcoin mining pool as well. For a major exchange to be involved in controversies, it is almost always inevitable for losses to be incurred as an aftermath effect. Will Binance be able to redeem itself from the current controversy? Let’s all wait and see if Binance’s defamation lawsuit against Forbes will render results in favor of the exchange. This is going to be a battle of giants in their respective industries.