Bloomberg Businessweek Apologized for Title on Binance’s CZ and Accusations of a Ponzi Scheme
Bloomberg’s Hong Kong publisher changed the article title from “Can Crypto’s Richest Man Stand the Cold?” to “Changpeng Zhao’s Ponzi Scheme.”
- A motion for discovery was filed against Bloomberg for allegedly portraying Binance as “sketchy.”
- CZ was sentenced to four months in prison for money laundering violations starting in June 2024.
- Binance previously sued media outlets like Forbes for alleged defamation.
Bloomberg Businessweek’s Hong Kong publisher, Modern Media, issued a public apology on July 6, 2022, for remarks made against Binance founder and former CEO Changpeng Zhao in its 250th issue titled “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.”
Aside from promising not to make the same mistakes, they reportedly donated an agreed sum to Songzi, Hubei Province Special Education Foundation “in lieu of damages.” Although the headline was changed, court documents still captured the original, directly mentioning “Ponzi scheme.”
Aside from promising not to repeat their mistakes, Bloomberg Businessweek’s Chinese edition donated an agreed sum to the Songzi, Hubei Province Special Education Foundation as compensation. Despite changing the headline, court documents still reflect the original title, “Changpeng Zhao’s Ponzi Scheme.”
Binance’s Changpeng Zhao sued Bloomberg’s Hong Kong publisher, Modern Media CL, for defamation over the article text.
Binance’s CZ Goes After Bloomberg
CZ sued Modern Media for defamation over a Bloomberg Businessweek profile titled “Can Crypto’s Richest Man Stand the Cold?” in English, which was published in Hong Kong as “Zhao Changpeng’s Ponzi Scheme” in Chinese.
The former CEO, CZ, demanded a retraction, which Modern Media complied with. Additionally, a motion for discovery was filed against Bloomberg LP and Bloomberg Inc. in the U.S. District Court, citing “defamatory allegations” and claiming the article portrayed Binance as “sketchy,” per CoinDesk.
Zhao has previously sued other media organizations, such as Forbes in 2020, over alleged defamatory statements. However, he decided to drop the suit in 2022.
CZ Goes to Jail
After a prolonged battle with the SEC, Binance founder and CEO Changpeng “CZ” Zhao was sentenced to four months in federal prison. He pleaded guilty to money laundering violations as part of Binance’s settlement agreement with the U.S. Department of Justice.
The agreement allowed Binance to resolve its legal troubles and continue operating under new leadership. In the prosecutor’s court filing, CZ’s statement, “better to ask for forgiveness than permission,” was highlighted, alleging that Binance operated with a blatant disregard for the law.
CZ began his sentence in June 2024 and is expected to be released around October 2024.
