In a significant development, Binance has won a defamation lawsuit against Bloomberg Businessweek’s China branch, following a similar move by Justin Sun, the founder of Tron. The lawsuit stemmed from a 2022 article initially titled “Changpeng Zhao’s Ponzi Scheme,” which was swiftly changed to “The Mysterious Changpeng Zhao.” Despite the quick amendment, Binance and Chinese courts proceeded with the case.
Legal Victory for Binance
The contentious article scrutinized Binance’s marketing tactics, alleging that CEO Changpeng Zhao and his team encouraged retail investors to buy memecoins and contributed to losses incurred by the Terra/Luna crash. It also claimed Binance operated a secret office in Shanghai and lacked robust compliance measures. These allegations have been corroborated by various global media outlets.
Reactions to the Court Ruling
The Chinese court ruling required Bloomberg to make a donation to children with special needs, a decision that has sparked mixed reactions. While Binance supporters celebrated the court’s decision, critics condemned Bloomberg Businessweek for perceived unprofessionalism and alleged inaccuracies.
Today, Bloomberg Businessweek Chinese Edition issued an apology statement for the false and inaccurate cover title concerning Binance in its 250th issue in July 2022.
We are pleased to see that the wrongful accusations have been retracted.
We will continue to focus on… pic.twitter.com/jwJvgz5uJk
— Binance (@binance) July 17, 2024
Following Justin Sun’s Lead
This victory for Binance follows closely on the heels of a similar legal action by Justin Sun. Sun recently won a defamation suit against a small Chinese media outlet, which was ordered to pay him $69. These legal actions appear to be part of a broader strategy to curb negative press within China.
Global Impact of Defamation Suits
However, these defamation suits have limited impact outside China due to stronger protections for freedom of speech in other regions. While Binance and Sun’s actions may deter critical reporting within China, international media remain largely unaffected, continuing to report on the cryptocurrency sector without fear of similar legal repercussions.
