Binance files lawsuit against Forbes over recent cryptocurrency article
By Bob Garcia
The cryptocurrency exchange isn’t happy with a recent report about the company’s US dealings
Changpeng Zhao (CZ) isn’t a happy man. The CEO of cryptocurrency exchange Binance is calling out Forbes for a recent article that accused the company of using its entry into the US as a way to try to circumvent regulations. To make sure his level of animosity over the situation is understood, CZ has filed a lawsuit against the media outlet and two of its journalists.
CZ asserts that the article provided “false and misleading” data. He filed his lawsuit in New Jersey against Forbes and journalists Michael del Castillo and Jason Brett, alleging defamation, and adding in the lawsuit, “The Story contains numerous false, misleading and defamatory statements about Binance.” CZ wants to be paid both compensatory and punitive damages, but didn’t specify how much.
Forbes had accused Binance of using its US arm to send money back to Binance while trying to keep the company out of the eyes of regulators. In its lawsuit, Binance asserts that Forbes referenced a document written by a former employee, Harry Zhou, but says that this person never worked for the company. After requests were made to Forbes to try to convince it to remove the article and issue a retraction, Binance felt it was left with no choice but to sue after Forbes ignored the requests. For its part, Forbes only states, “We stand by our reporting.”
Proving defamation lawsuits isn’t easy, and CZ will have to tread lightly. The exchange has been pulled into controversy in the past and, while it has been able to avoid any major issues, the lawsuit could ultimately lead to unwanted scrutiny.