According to documents leaked to Forbes, in 2018, Binance developed a corporate plan to make a profit in the US market, while avoiding oversight by the country’s regulatory authorities.
According to Forbes, with reference to documents published in the publication from 2018, Binance deliberately misled US regulators by gaining access to American investors. The document, allegedly created with the knowledge of Binance management, details the work of the American branch of the company, codenamed “Tai Chi organization”.
The presentation reveals how the “Tai Chi organization” will distribute Binance’s revenue from the US market through a network of corporations, without exposing its parent company to the scrutiny of the financial regulator.
The CEO of the Binance exchange Changpeng Zhao (Changpeng Zhao) commented on the publication of Forbes in a series of posts on the social network Twitter. He said that Binance follows all local laws, including US laws, and the document that got into Forbes was not developed by a former or current employee of the company.
“Anyone can prepare a ‘strategy document’, but that doesn’t mean that Binance will follow these guidelines,” Zhao said, adding that the presentation was created by a third party, not internally.
The person who submitted the document to the editor, who wished to remain anonymous, said that the presentation was first presented to Changpeng Zhao in the fourth quarter of 2018 by Binance M & A manager Jared Gross. According to Forbes, this employee is the general counsel of the exchange.
The source reports that the document was created by a former employee of Binance, Harry Zhou, co-founder of the partially owned Binance cryptocurrency exchange in San Francisco, Koi Trading. The file is called “Presentation 2”, so other strategies may have been considered.
Forbes says the document calls for” strategic ” use of VPNs to avoid the attention of the U.S. Securities and Exchange Commission (SEC) and the New York State Department of Financial Services (NYFDS).
The document provides a” detailed strategy for diverting the attention ” of US regulators. For example, Binance joining various industry self-regulatory groups to ” demonstrate a willingness to comply with regulation.”
Recall that in September 2019, Binance launched the Binance U.S. cryptocurrency exchange in the United States.