Changpeng Zhao and He Yi respond to Forbes' accusation that Binance US is a fraudulent operation: creating panic, nonsense

According to BlockBeats, on October 30, Forbes released a new report stating that a leaked document detailed a series of measures taken by the cryptocurrency trading platform Binance to avoid scrutiny by US regulators.

Forbes pointed out that Binance "conceived an elaborate corporate structure designed to deliberately deceive regulators and secretly profit from cryptocurrency investors in the United States." The source of the document based on the Forbes report is a 2018 document called "Tai Chi". According to Forbes, the document contains a development roadmap for an American company, which later became Binance.US.

According to Forbes, “The leaked document, titled ‘Tai Chi’, was a slide deck that senior Binance executives viewed and was a strategic plan to execute bait-and-switch tactics. It would set up operations in the U.S. through a then-unnamed entity to distract regulators and draw attention to the company. In the process of complying with regulations, steps would be taken to transfer revenue to parent company Binance in the form of licensing fees, while potential customers would be taught how to circumvent geographic restrictions while implementing technical solutions.”

Finally, Forbes wrote that it “has learned that the Tai Chi documents are currently circulating among law firms, accounting firms, and other companies associated with Binance, and there is speculation that the FBI and IRS may launch investigations.”

Binance also responded quickly to the release of the report. Binance CEO Changpeng Zhao (CZ) responded on Twitter: "FUD. The statements and allegations in the article are incorrect. The entire article relies on a third-party document. The document was not produced by a Binance employee (current or former). Anyone can write a so-called "strategy document", but it does not mean that Binance will follow the document you wrote."

He went on to write: “Binance has always operated within the law, and our numerous international trading platforms in countries such as the United States, Singapore, Japan, the United Kingdom, South Korea, and Turkey have also demonstrated this. Binance has established partnerships with many of the industry’s top AML CFT tools and vendors (including Ciphertrace, Elliptic, Refinitiv, Jumio, etc.) to maintain strict regulatory standards, and we will continue to do so. Binance has very close cooperation with many well-known law enforcement agencies around the world.”

CZ stated: “We do not recognize the alleged documents. In the US market, Binance has very strict restrictions and operating procedures, which is why we separated Binance US into an independent market.

At the same time, He Yi of Binance also responded to the accusations in the article published by Forbes, saying that "the original author believed that Binance US was evading supervision by fake operations based on a law firm PPT proposal to Binance, and also speculated that Binance was investigated by xx. This accusation is nonsense."