Forbes magazine has uncovered a story about the world’s largest crypto exchange, Binance. According to a leaked document, Binance is said to have devised a certain concept to deliberately deceive regulators.
The document in questionThe file that contains this information appears to have been prepared by several senior executives and obtained from Forbes
The Cayman Islands-based Bitcoin exchange Binance currently has around 10 billion US dollars in total crypto transactions per day. Its founder and CEO Changpeng Zhao, called „CZ“, is one of the few business people who have made it into the elite ranks of billionaires with the help of cryptocurrencies.
The leaked source is from 2018. Forbes has not yet published it itself. It is apparently available to the magazine in the form of a presentation. The fact that the file is named „Presentation 2“ could also mean, according to Forbes, that other strategies may have been considered.
This “Presentation 2” contains plans for a sub-division of Binance
In reference to the Chinese martial arts, this section is called „Tai Chi Unit“. The name doesn’t seem to have been chosen by chance. The approach of Tai Chi is based on the principle of „giving up and overcoming“ or using the opponent’s weight against the opponent himself. In the specific case of Binance, the tactic was to found a subsidiary called Binance.US. Unlike Binance itself, Binance.US does not allow trading in highly indebted crypto derivatives, as the regulations in the USA also prohibit.
The unit, later christened „Tai Chi Entity“, is said to have carried out sham operations in the United States, which allegedly had the sole aim of deceiving the regulatory authorities and distracting them according to the decoy principle. Binance.US is said to have paid license fees and other income to the parent company. Prospective customers are reported to have been given instructions on how to avoid geographic restrictions while further technological remedies were being worked on.