The charges have been brought against Modern Media Company over a cover piece that allegedly defamed Binance CEO Changpeng Zhao (CZ).
CZ Cries Defamation
Bloomberg’s Hong Kong partner, Modern Media Company, ran the 250th issue of the Bloomberg Businessweek, with the cover piece titled “Changpeng Zhao’s Ponzi Scheme.” According to the Hong Kong Economic Times (HKET), this is the cover piece title that pushed CZ to file charges of defamation against Modern Media Company. According to CZ’s legal team, the influential nature of the publication has resulted in distress and embarrassment due to the negative public image portrayed by the cover piece. The legal representative for the crypto billionaire has also claimed that the title is an attempt by Bloomberg to spur “hatred, contempt, and ridicule” towards Changpeng Zhao.
Accusations And Demands
The legal case demands that the media company withdraw the defamatory comments against CZ, a formal apology, and financial compensation, including damages. In addition, CZ has demanded a retraction, which would also remove the edition's physical copies from all newsstands and stalls. The lawsuit also calls for a restraining order to stop the Modern Media team from further attempting to defame the Binance CEO. in the U.S District Court for the Southern District of New York, claiming “defamatory allegations.” The motion claims that the article portrayed Binance as “sketchy” and also featured a quote from an anonymous trader calling the crypto exchange a “massive s**tcoin casino” in an attempt to malign the company.
CZ Gets His Way
The allegations have not been directly addressed by either CZ or Binance. However, it appears that Bloomberg had taken certain steps to mitigate the issue even before the lawsuit was filed. The media company has reportedly changed certain versions of the offending title to read “The Mysterious Changpeng Zhao.” Additionally, the English version of the cover features a title reading “Can Crypto’s Richest Man Stand The Cold?” Currently, only the Chinese edition of the cover still features the contentious title.
This is not the first time Changpeng Zhao has taken a publication to court over defamation claims. The crypto billionaire had sued Forbes in 2020 over a piece that accused the firm of evading regulators and siphoning off money. However, the charges were dropped soon enough, and Binance announced a $200 million investment in Forbes a year later.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.