Bloomberg’s Modern Media Company has been charged in connection with a cover story that allegedly defamed Binance CEO Changpeng Zhao (CZ).
CZ Complains of Defamation
Modern Media Company, Bloomberg’s Hong Kong partner, published the 250th issue of Bloomberg Businessweek, with the cover story titled “Changpeng Zhao’s Ponzi Scheme.” According to the Hong Kong Economic Times (HKET), this is the title of the cover piece that prompted CZ to file defamation charges against Modern Media Company.
According to CZ’s legal team, the publication’s influential nature has resulted in distress and embarrassment as a result of the cover piece’s negative public image. Bloomberg’s legal representative has also claimed that the title is an attempt by Bloomberg to incite “hatred, contempt, and ridicule” towards Changpeng Zhao.
Charges and Demands
The legal action demands that the media company retract the defamatory remarks made about CZ, as well as a formal apology and financial compensation, including damages. Furthermore, CZ has demanded a retraction, as well as the removal of physical copies of the edition from all newsstands and stalls. The lawsuit also requests a restraining order to prevent the Bloomberg team from further defaming the Binance CEO.
Zhao and his legal team have also filed a motion for discovery in the United States District Court for the Southern District of New York against Bloomberg LP and Bloomberg Inc., claiming “defamatory allegations.” According to the motion, the article portrayed Binance as “sketchy”.
CZ Gets What He Wants
CZ and Binance have not responded directly to the allegations. However, it appears that Bloomberg took steps to mitigate the problem before the lawsuit was filed. The offending title has reportedly been changed to “The Mysterious Changpeng Zhao” by the media company. In addition, the English version of the cover has the title “Can Crypto’s Richest Man Stand The Cold?” At the moment, only the Chinese edition of the cover retains the contentious title.
This is not the first time Changpeng Zhao has sued a publication for defamation. In 2020, the crypto billionaire sued Forbes over an article accusing the company of evading regulators and siphoning off money. The charges, however, were dropped quickly, and Binance announced a $200 million investment in Forbes a year later.
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