It is normal for traditional media to cover the crypto market. Especially now that the price of Bitcoin has entered its biggest bullish rally in recent years. However, sometimes these hedges cause resentment within the crypto world and its companies. Precisely what has happened now that Binance is suing Forbes and two of its journalists, due to what the exchange considers a “false and misleading” article.
The lawsuit was filed by Binance in the state of New Jersey against Forbes Media. It would be the result of an article published on the Forbes website on October 29, and written by journalists Michael del Castillo and Jason Brett under the title «Leaked Tai Chi Document Reveals Binance’s Elaborate Plan to Evade Bitcoin Regulators Was Defamatory».
In it, Forbes journalists would claim that the document known as “Tai Chi” presents a plan drawn up by the cryptocurrency exchange to deceive US regulators. This would be achieved by channeling the exchange’s income through a US entity. While the company ensured that Binance was outside the scope of American law.
This has quickly sparked the fury of Binance. Which has responded by filing the lawsuit against the media company. Publicly stating that the Forbes article “contains numerous false, misleading and defamatory statements about Binance.” Also ensuring that the author of the document “Tai Chi”, Harry Zhou, has never worked for the exchange. So it would not come from the company.
The medium defends itself
Before filing the lawsuit against Forbes demanding compensation for damages caused by the article, Binance had sent a letter demanding the firing of the journalists, the deletion of the article, as well as public apologies for the publication of false information. However, Forbes is keeping the article in place, stating that Binance’s Chief Compliance Officer had previously confirmed that Zhou is an employee of the exchange.
According to Binance, the information disclosed by Forbes has caused property damage valued at “millions of dollars.” They would still have to be proven by the exchange before the New Jersey court, along with the falsity of the information provided by Forbes and the bad faith of the company when publishing it.
So far, the most likely outcome of this trial appears to be Forbes’ victory. This due to the difficulty in the American legal system to win a defamation lawsuit against journalists and media. And, a lawsuit of this type can only be won if the bad faith and the prior knowledge of the media that the published information is false is proven beyond a reasonable doubt.
However, the simple fact that the exchange takes Forbes to court is an important sign. As a public relations movement of Binance to try to show his innocence to the public. Beyond itself the Tai Chi document did indeed emerge from the company.