Cryptocurrency exchange Binance withdrew a lawsuit against Forbes Media journalists, who published defamatory materials that tarnished the reputation of the exchange.
About three months ago, Forbes journalists Michael del Castillo and Jason Brett wrote an article detailing the activities of Binance’s US subsidiary. The document presents a diagram codenamed “Tai Chi Organization”. With its help, the exchange allegedly bypasses the requirements of regulatory bodies, using a legal entity in the United States to conduct business in the country and redirect the profits of the parent company.
The suspicion of the authors of the article was caused by the fact that the CEO of Binance Changpeng Zhao repeatedly refused to answer questions about where the main office of the exchange is located. Earlier, Zhao stated that headquarters and offices have already lost relevance.
Binance has accused journalists of publishing false statements and defamation. The exchange tried to recover compensation for material damage from Forbes and to get the article removed from publication. The complaint states that Binance does not violate and fully complies with all applicable laws, rules and regulations. In addition, Binance does not seek to evade regulatory requirements in any jurisdiction. However, in a statement dated February 4, 2021, Binance management announced a voluntary withdrawal from the claim, without explaining the reasons, but retaining the right to file a second claim. On the same day, the judge granted Binance’s appeal.
One of Binance’s lawyers in this case is Charles Harder. He represented professional wrestler Hulk Hogan in a case against media organization Gawker. Gawker subsequently filed for bankruptcy. Forbes’ chief communications officer Matthew Hutchison said the publication still adheres to its position and does not refuse to publish.
As a reminder, 11 class action lawsuits against cryptocurrency exchanges were filed in the Southern District of New York last year. Among the defendants were Binance and its boss, Changpeng Zhao, who were accused of not complying with securities laws.
