Binance drops defamation suit against Forbes over regulation-avoidance claims Business Binance Holdings Limited, the parent company of its namesake digital asset exchange group, has voluntarily dismissed its legal action against Forbes and two of its writers. The November 2020 complaint sought damages over an article that alleged Binance had intentionally created structures to evade U.S. regulators. The motion to dismiss the case was filed on February 4 and approved by a judge. The four-line notice did not give a reason for dropping the case. The Forbes article, published in October 2020 and penned by reporters Michael del Castillo and Jason Brett, claimed a leaked 2018 corporate presentation described plans for a new business entity known in-house as “Tai Chi.” Forbes claimed Binance’s later U.S. subsidiary, Binance.us, was a strategic “bait and switch” that would comply with local regulations on the surface and participate in U.S. regulatory programs as a distraction, while funneling U.S. traders’ fees to its parent company in the Cayman Islands. The U.S. entity would even pay “nominal fines” occasionally to show its compliance. The article also alleged there were moves to educate users on how to work around geographic restrictions to use more advanced trading features not allowed in the U.S., such as leveraged derivatives.