As reported by Forbes, “the Tai Chi document is currently circulating among law firms, accounting firms and others associated with Binance, and there is speculation that the FBI and the IRS may be investigating. When reached by telephone, an FBI agent in the Washington, D.C .field office initially denied knowledge of Binance and hung up. Later, the agent formally issued a “no comment.”
Forbes was able to obtain a 2018 document containing the details about the creation of a US-based company named “Tai Chi”, which was meant to deceive American regulators.
Harry Zhou, the Koi Trading CEO, who once worked for Binance and also known for working with Chinese cryptocurrency exchanges in America was said to be behind the whole plan.
According to the leaked information reported by Forbes, Binance did not expect to obtain approvals from United States regulatory bodies, but willing to work with them to avoid enforcement actions.
Also, the use of VPN to circumvent geographical restrictions is also encouraged by the top crypto exchange:
“Notably, the document explicitly calls for the “strategic” use of virtual private networks (VPNs) that obscure traders’ locations as a way to evade regulatory scrutiny by the SEC and the NYDFS.”
CZ Binance Reacts to the Rumor
In a series of tweets meant to discredit the leaked information, Binance CEO, CZ termed the Forbes report as FUD and incorrect.
CZ tweeted, “FUD. The statements and accusations in the article are incorrect. The whole article hinges on a 3rd party document. The said document was not produced by a Binance employee (current or ex). Anyone can produce a “strategy document”, but it does not mean Binance follows them.
“…Binance has very strong collaboration with many notable law enforcement agencies worldwide that we cooperate very closely with.
“…Regarding the U.S., Binance has very strong restrictions and operating procedures in place, which is why we have the segregation of Binance U.S. as a standalone marketplace.”
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