Binance Holding Limited’s creation was from a detailed corporate structure that was purposely to mislead regulators and secretly earn income from crypto investors based in the United States.
It is also famous as the world’s biggest cryptocurrency exchange platform. Binance is based in the Cayman Islands. It is also responsible for $10 billion worth of crypto transactions every day, making its founder and CEO, Changpeng Zhao, also known as “CZ”, one of the few recognized billionaires in the cryptocurrency world.
Tai Chi Entity
A 2018 document believes a senior executive of Binance wrote and Forbes obtained. It presents in detail plans for a temporarily unnamed company that is based in the U.S. with the codename Tai Chi entity. This is understood to be an allusion to the martial arts. It originated in China. It has an approach built around the belief of yield and overcome. Or by using one’s opponent’s strength and weight against himself.
As Binance seems to have struggled to comply with US laws by creating its associated subsidiary, Binance.US, the motives behind it are now unclear. Binance.US is open to American investors. But unlike its primary developer, Binance, it does not allow highly supported trades with crypto-derivatives that also has control in the United States.
A slideshow that Binance’s senior executives saw wherein its contents leaked, is currently known as the Tai Chi document. The document outlines the strategic plan to execute a method of bait and switch. To divert the attention of regulators with faked regard to company compliance, the temporarily unnamed company constructed operations in the United States. Necessary measures will take to transfer license fees and other forms of revenue to Binance, the parent company. And for the time being, potential users will learn how to avoid restrictions brought about by location. This is while technological fixes and sorting are in place.
No Direct Responses and Feedback from Binance to Forbes
Forbes, however, received no response after reaching out to Binance’s founder, Changpeng Zhao, and to Samuel Lim, Binance’s chief compliance officer. Consequently, this was regarding the leaked document, nor any answers to the questions Forbes had sent. Forbes also received no feedback from Binance.US CEO Catherine Coley and Harry Zhou, who are allegedly the sources for the content of the document.
However, the only feedback known the Binance team gave regarding the leaked document that came directly from its founder, CZ. Specifically, these were his responses to several posts on Twitter where he claimed that the details in the document were erroneous and that the known sources for the contents of the document were no longer part of the company. CZ emphasized in one of his Twitter posts that Binance has always operated under the restrictions of the law.