The CEO of Binance, Changpeng Zhao (CZ), criticized a Reuters reporter on October 17 for a number of “accusations” they have made against the exchange over the past few months.
According to CZ, the writer has written multiple articles about Binance based on unnamed sources, and their newest line of inquiry has entered “indefensible terrain.”
The most recent story that caused Binance problems was published on Monday and was headed “How Binance CEO and aides plotted to avoid authorities in U.S. and UK.”
According to the article, Binance has made an effort to “insulate” itself from regulators like the Securities and Exchange Commission (SEC) while maintaining that its CEO is “dedicated to privacy” and “attentive to minute operational details.”
Zhao responded by refuting the claims that he is an “overbearing” or “secretive” leader by citing a document that details some of the values he upholds.
He also addressed allegations on the “Tai-Chi Powerpoint,” a strategy for establishing Binance as an organization in the United States.
Reuters said that the idea, put up by businessman Harry Zhou, suggested that Binance establish a different U.S. entity that complies with the Bank Secrecy Act.
Although the organization would appear to offer fewer features and liquidity than Binance’s primary exchange, U.S. users might take advantage of a “loophole” to access the latter by using virtual private networks (VPNs).
However, CZ claims that Binance never actually carried out the scheme.
He clarified, “I personally rejected it. The entire PowerPoint is barely seven slides long, lacks any useful guidance, and appears to have been put together by a fifth grader.
The CEO further clarified that, in contrast to what the story claimed, Binance U.S. was founded on the guidance of American law firms and continues to exist as a separate legal entity from Binance.com.
Although Binance often responds to press inquiries, CZ claimed that the company decided not to do so in relation to the most recent Reuters article. He claimed that the reporter made it clear that she wanted to talk about his kids.
“Because we could not get assurances that this Reuters reporter would refrain from writing about my family, we have once again taken the unusual step of not responding to them directly,” he explained. “Instead, we are taking the story directly to the community.”