The leading spot cryptocurrency exchange Binance has filed a defamation suit against Forbes and its two writers for publishing a story —“Leaked ‘Tai Chi’ Document Reveals Binance’s Elaborate Scheme To Evade Bitcoin Regulators” — last month.
The lawsuit mentions Binance as “a limited company organized under the laws of the Cayman Islands,” which is in contrast with CZ’s comments on the company not having a physical entity rather being decentralized, just like Bitcoin.
Filed in US District Court in the District of New Jersey, the complaint says the article “contains numerous false, misleading and defamatory statements about Binance.”
Forbes staff writer Michael del Castillo, who wrote the article, and Jason Brett, who contributed to it, are named alongside Forbes in the lawsuit.
According to the lawsuit, the false public statements and innuendo by the defendants that the exchange seeks to evade regulators and is engaged in money laundering are “highly damaging to Binance.”
Before filing the lawsuit, Binance asked the Defendants to “remove, retract, and apologize” for the false statements. Still, Forbes' refusal has led the exchange to take this step to,
“Protect its hard-earned reputation and business, which has been severely damaged by Defendants’ false and defamatory statements and wrongful conduct.”
Binance, whose CEO has previously said they would sue the media publication The Block, has hired Charles Harder as one of the attorneys. Harder represented Hulk Hogan in a privacy invasion against Gawker Media and won the wrestler a $31 million settlement leading Gawker to file for bankruptcy. Bitcoin proponent Andreas Antopolous believes Binance is unlikely to win it as,
“The bar for defamation in the US is, rightly, exceptionally high. There has to be malice and statements of fact, not opinion.”
“In my opinion, this will fail, quickly, and Binance will probably end up paying the court costs too.”