Changpeng Zhao issued a legal complaint against Bloomberg Businessweek’s Hong Kong publisher, Modern Media CL. It claims that a released article made many unsubstantiated remarks that brought a bad reputation to Binance and Zhao. Zhao has also issued a Memorandum of Law in New York regarding the case.
Binance CEO Changpeng Zhao has issued a lawsuit against a Bloomberg subsidiary for defamation. The legal complaint highlights a recently released article that presented various defamatory remarks that affect Zhao and its company.
Binance CEO Changpeng Zhao has issued a lawsuit against a Bloomberg subsidiary for defamation, as presented in a court filing on July 25. The legal complaint came from the High Court of Hong Kong, while a Memorandum of Law got filed in the District Court of the Southern District of New York regarding the case. The subsidiary is Bloomberg Businessweek’s Hong Kong publisher Modern Media CL.
The filing states that the related text that got released contained serious and defamatory accusations against Binance and Zhao that were false. It claims that the article got designed to deceive readers and drive them into thinking that the CEO and exchange were participating in illegal activities.
The article got titled Can Crypto’s Richest Man Stand the Cold.? But the translation into Chinese presented a different headline that led to the issuing of the legal complaint. The translation alleged that Zhao was leading a Ponzi scheme. The English version also highlighted sentences that seemed very offensive.
The lawsuit points to many specific statements made in the article, alleging that it was implying that Binance was playing a role in a money laundering procedure, fraud, and hacking. The text also features a quote from a Binance user that described Binance as a massive shitcoin casino without giving further identification or verification of the trader.
Changpeng Zhao has issued legal complaints against media publications before. He filed a lawsuit against venture capital firm Sequoia for defamation in 2019 and Forbes in 2020, though he abandoned the latter.
Binance thinks that legality is a serious matter, and even though it previously went through regulatory issues, it has been working hard with regulators. The exchange stopped its support for Litecoin privacy enabling MimbleWimble-based transactions, as privacy coins are a matter of concern for regulators.
Many regulatory improvements regarding Binance and its operations took effect, with the Dutch Central Bank fining the exchange $3.3 million for carrying out financial activities without a license.
On the other hand, Binance received a license to carry out its activities in Spain, which adds to the increasing list of regions it serves. It also reached agreements with Cambodia to bring help in regulatory matters.
Binance has made public its desire to become a global crypto exchange. For the most part, it has already achieved that goal, even as it has rival exchanges like Coinbase.
The entity is now the one with the most crypto in the world, overtaking Coinbase. Zhao expressed that Binance has a very healthy structure and that it was expanding its hiring process at this time, even if the crypto market is facing a downturn.
By: Jenson Nuñez