A Chinese court supported Binance in a defamation lawsuit against Bloomberg Businessweek’s China division.
Binance won a legal battle against Bloomberg Businessweek China for an article previously published as ‘Changpeng Zhao’s Ponzi Scheme’ but later changed to ‘The Mysterious Changpeng Zhao,’much to Binance’s disapproval.
Chinese Court favors Binance in defamation lawsuit
The Bloomberg article focused on Binance’s marketing approaches, promotion of memecoins, and its purported role in the Terra/Luna collapse. The article also questioned Binance’s corporate governance, addressing compliance issues that Binance and KPMG later denied in their defamation suit.
The court’s judgment required Bloomberg to donate to charities for children with special needs. The general public has heavily condemned Bloomberg for being unprofessional and calling the allegations against Binance fake news, which has led to people supporting Binance.
Binance wins a defamation case, while Tron’s Justin Sun also gets a win in another defamation case.
Thus, Binance’s recent legal win parallels that of Justin Sun, who received $69 from a relatively obscure Chinese media outlet. Such incidents demonstrate that more and more crypto firms have relied on Chinese courts to seek justice for defamation.
Such victories are common in China, yet international media cite stronger safeguards for freedom of speech in other countries that would protect foreign media against such legal actions. This approach enables the crypto firms to have good reputations worldwide despite the legal problems in China.
Risk aversion due to legal consequences undermines Chinese journalism
Chinese defamation laws can limit local media from reporting on negative issues concerning cryptocurrency companies due to legal implications. This self-censorship is unhelpful to journalistic professionalism and trustworthiness.
On the other hand, freedom of speech in international media allows articles with criticisms and even investigations, highlighting the discrepancy between China and global media.
Digital currency firms use legal measures to avoid negative image
These judgments have proven case precedents for future defamation trials against Chinese crypto firms, showing how they tactfully front legal measures to preserve their image. On the other hand, international media will likely continue covering these issues without constraints due to better legal guarantees in foreign countries.
Despite tensions between Chinese courts and global media, there is interaction, with localized offices being more constrained than globally recognized ones. This dynamic guarantees that information sharing remains consistent, although legal conditions affecting agencies differ from one area to another.
