Binance quietly drops ‘multi-million’ Forbes defamation lawsuit

Binance, the world’s largest cryptocurrency exchange, has dropped a defamation lawsuit against Forbes and two of its journalists, according to official court documents.

Binance Holdings filed a lawsuit against Forbes, along with journalists Michael Del Castillo and Jason Brett in November, after an article alleging that Binance sought to distract and dodge financial regulators in the US.

A notice of voluntary dismissal was filed in US District Court in New Jersey on February 4, ending the pending legal action against Forbes. The deposit does not contain an explanation for withdrawing the lawsuit, as it simply states that Binance, “hereby gives voluntary notice (Sic) Dismissal without prejudice to the above-mentioned procedure against defendants Forbes Media LLC, Michael del Castillo and Jason Brett. “

Forbes’ investigation was based on an allegedly leaked document from a former Binance employee, detailing the company’s strategy to undermine the efforts of US regulators while continuing to serve US-based customers.

The document claimed to reveal Binance’s plans to deal with various regulators “without expecting success.” Other hypothesized strategies detailed in the document included proactively joining with self-regulatory organizations, and using virtual private networks (VPNs) to evade regulatory scrutiny.

Dubbed the “Tai Chi Document,” Binance Holdings claimed that the Forbes article cost her millions of dollars in material damage, stating at the time that “the story contains many false, misleading and defamatory data about Binance”

A spokesperson for Binance told Cointelegraph that the dismissal was “without bias,” which means the company’s position on the allegations in the article has not changed. They said:

Binance still firmly believes that the Forbes article of October 29, 2020, is false and misleading. As the company made clear in its complaint against Forbes, Binance is obligated to comply with all applicable laws and regulations, and Forbes’ claims to the contrary have no basis. However, in order to provide the best possible service to its users, especially at this time of unprecedented growth, the company is not pursuing the lawsuit at this time. “