Changpeng “CZ” Zhao sues Bloomberg subsidiary alleging defamation
Binance CEO Changpeng “CZ” Zhao claims he was defamed in an article run by the Chinese language publisher of Businessweek in Hong Kong. He is suing Bloomberg Businessweek in Hong Kong, accusing the outlet of defamation on July 25.
A Bloomberg article was republished by its Chinese subsidiary using the title “Zhao Changpeng’s Ponzi Scheme.”
Changpeng “CZ” Zhao is filing the legal action related to a July 6 article, which accuses the chief executive of operating a “Ponzi scheme.”
The filing documents demanded that Modern Media printed a report that “contained false, malicious and defamatory statements about Zhao and his company, Binance Holdings Limited.”
The Chinese edition ran its version of a June 23 Bloomberg article titled “Can Crypto’s Richest Man Stand the Cold?” but was published instead with the title “Zhao Changpeng’s Ponzi Scheme,” which caused “distress” and “embarrassment,” CZ said.
CZ commented on the original article, “While most journalists at Bloomberg are good, this time, it was bad.” On July 25, he advised, “Be accountable for your actions.”
Zhao is also suing the publication for using the Ponzi-referencing title in the Chinese edition of Bloomberg Businessweek’s social media accounts to promote the article. The Chinese language article was also distributed in print around Hong Kong on July 7, according to the filings.
Though The head of Binance claimed, the filing is a personal suit and has nothing to do with the exchange or company.
The head of Binance said — due to the wide reach Businessweek has in Hong Kong — the article led to a degradation of his character within the crypto community and other business circles, according to the report.
A motion for detection was also filed against Bloomberg in the United States for the defamation that came from the original article. It read:
“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.”
Zhao is pursuing a dominant position barring the publication from ever republishing the allegedly defamatory statements in Hong Kong. He also wants to see the removal and recalling of the statements along with damages, interest, and costs.
In court documents, Bloomberg partially pleased some of Zhao’s concerns before the lawsuit was filed by changing the article title to “The Mysterious Changpeng Zhao.”
As the defamatory social media posts were deleted and physical copies of the translated article had been recalled in Hong Kong.
Earlier in 2020, Binance Holdings Ltd sued Forbes Media LLC for defamation but quietly dropped the case the following year.
