Binance CEO files defamation lawsuit against Bloomberg subsidiary in Hong Kong

  • Binance chief CZ has filed a defamation suit as a Chinese article alleges that he was running a Ponzi Scheme.
  • CZ has filed for a ruling that will bar the publication from republishing such defamatory statements along with demanding other damages and cost compensations.

Binance CEO Changpeng Zhao has gone all out filing a defamation suit against a Bloomberg subsidiary. As part of the filing, the Binance chief has sued “Bloomberg Businessweek”/Chinese version publisher “Modern Media Company Limited ” in the Hong Kong High Court. Modern Media functions as an independent entity by licensing the Bloomberg content.

This happens as Bloomberg Businessweek published its 250th issue with the cover “Changpeng Zhao’s Ponzi Scheme”. As a result, Zhao has filed a defamation case against the publication for false accusations.

As per the filing, Modern Media published a report that “contained false, malicious and defamatory statements about Zhao and his company, Binance Holdings Limited”. The plaintiff i.e. Changpeng Zhao has asked Modern Media to withdraw the defamatory remarks and issue a formal apology. Besides, CZ has also asked Modern Media to give due compensation for the same.

Basically, the Chinese edition ran its version of a Bloomberg article titled “Can Crypto’s Richest Man Stand the Cold”? However, it published this article with the title “Zhao Changpeng’s Ponzi Scheme”. Bloomberg published that article last month on June 23. Two days later, CZ wrote on his Twitter:

The comments here says it all. While most journalist at Bloomberg are good, but this time, it was bad. Bloomberg: hey, we will do a nice profile piece on you, invite you for photoshoots, etc. Then switches the story last minute. Ignore all positive comments they got from 3rd parties. Picked only old negatives. And still puts you on the cover. WTF!? Unprofessional.

CZ likely to file a motion against Bloomberg in the U.S.

In his filing, Zhao said the Chinese edition of Bloomberg Businessweek also used the Ponzi-referencing title on social media accounts in order to promote the title. As per the filing, Modern Media also distributed the Chinese language article in Hong Kong on July 7.

The defamation suit has been personally filed by Changpeng Zhao and has nothing to do with Binance. Furthermore, the Binance chief has also filed a motion of discovery against Bloomberg in the United States. The motion for defamation reads:

Surprisingly, the Original Article contained several serious and defamatory allegations made against Zhao and Binance that were completely unsubstantiated and were obviously designed to mislead readers into believing that Zhao and Binance have been engaging in illegal or unsavory activities.

CZ is currently pursuing a ruling that will bar the publication from republishing such defamatory statements in Hong Kong. He also wants the removal and recalling of the statements along with other damages and costs.

About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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