Binance CEO Denies 'Tai Chi' Bitcoin Regulation Evasion Scheme

Binance CEO Changpeng “CZ” Zhao took to Twitter to deny a Forbes report alleging that Binance, the world’s top cryptocurrency exchange, had created an “elaborate corporate structure designed to intentionally deceive regulators and surreptitiously profit from crypto investors in the United States.”

FUD. The statements and accusations in the article are incorrect. The whole article hinges on a 3rd party document. The said document was not produced by a @Binance employee (current or ex). Anyone can produce a “strategy document”, but it does not mean Binance follows them. 1/7 https://t.co/AnIUJLXWTZ

— CZ Binance (@cz_binance) October 29, 2020

Forbes reporting hinges on a leaked document from 2018 “thought to be created by” Binance executives. The so-called Tai Chi document outlines Binance’s purported strategy to create an American subsidiary, the “Tai Chi entity,” as a form of subterfuge, allowing the company to point to a subsidiary that was above-board with regulations. It would then use the subsidiary  as a way to move revenue around to its other operations.

CZ flatly called the report “FUD” and said it “was not produced by a Binance employee (current or ex).” According to CZ, it’s a third-party document: “Anyone can produce a ‘strategy document’, but it does not mean Binance follows them.”

Decrypt has reached out Binance.US for comment.

(This story is being updated as it develops.)

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