Binance Secures Apology from Bloomberg Businessweek Over Defamatory Claims

• Bloomberg Businessweek’s Chinese edition issued an apology to Binance and founder CZ for false accusations.
• Bloomberg retracted a July 2022 headline falsely accusing CZ of running a Ponzi scheme.
• The apology included a donation to the Songzi, Hubei Province Special Education Foundation.

Bloomberg Businessweek’s Chinese edition has issued a public apology to Binance and its founder Changpeng Zhao (CZ) for publishing false and defamatory content. In response to Bloomberg’s apology, Binance stated,

 We are pleased to see that the wrongful accusations have been retracted.

Bloomberg Retracts False Accusations Against Binance Founder

The apology, dated July 17, 2024, retracts a controversial headline from July 2022 that falsely accused Zhao of running a Ponzi scheme. The apology was accompanied by a commitment to donate an agreed sum to the Songzi, Hubei Province Special Education Foundation as part of the reparation efforts.

Bloomberg Businessweek Apologizes for Defamatory Headline

In their statement, Bloomberg Businessweek acknowledged their error, stating, 

In our 250th issue (6 July 2022), we made the egregious mistake of publishing a cover page with a headline that was false and baseless. We were wrong to write ‘Changpeng Zhao’s Ponzi Scheme’. We retract and withdraw this offending statement without reservation and apologise unreservedly for any harm or distress caused to Mr Zhao and Binance, the organisation he founded.

The Controversy Over Bloomberg’s Article Title

The controversy began in July 2022 when Bloomberg Businessweek’s Hong Kong publisher changed an article’s title from “Can Crypto’s Richest Man Stand the Cold?” to “Changpeng Zhao’s Ponzi Scheme.” This led to significant backlash and legal actions from Binance and its founder.

Changpeng Zhao Files Defamation Lawsuit Against Bloomberg

CZ, filed a defamation lawsuit against Modern Media CL, Bloomberg’s Hong Kong publisher. The lawsuit highlighted that the article’s portrayal of Binance and Zhao was misleading and damaging. CZ demanded a retraction, which Modern Media ultimately complied with.

CZ’s Imprisonment for Money Laundering Violations

Adding to the tumultuous period for Binance, CZ was sentenced to four months in federal prison for money laundering violations, starting in June 2024. This sentence was part of a settlement agreement with the U.S. Department of Justice, allowing Binance to resolve its legal issues and continue operating under new leadership. CZ’s statement, “better to ask for forgiveness than permission,” was highlighted in the prosecutor’s court filing, suggesting Binance operated with a disregard for regulatory compliance. CZ is expected to be released around October 2024.