According to a Forbes report basing its allegations on a "leaked document," Binance - a major crypto exchange - was "intentionally" defrauding US regulatory bodies. As what noted in the report:
"Binance Holdings Limited, the world's largest cryptocurrency exchange conceived of an elaborate corporate structure designed to intentionally deceive regulators and surreptitiously profit from crypto investors in the United States."
It's said that the document in question - "the Tai Chi document" - had been published in 2018 while it has not been disclosed to the public at press time. Forbes noted that it's alleged that Binance intended to use a US firm - "Tai Chi entity" which was later established as Binance.US - so as to distract regulators.
As per the report, "While the then-unnamed entity set up operations in the United States to distract regulators with feigned interest in compliance, measures would be put in place to move revenue in the form of licensing fees and more to the parent company, Binance. All the while, potential customers would be taught how to evade geographic restrictions while technological work-arounds were put in place."
The report added further that the it's believed that as "a slideshow", the "leaked" Tai Chi document has been gotten to know by senior Binance executives:
"The source of the document, whose identity we've agreed not to reveal, says it was first presented to CZ in Q4 2018 by Binance mergers and acquisitions manager Jared Gross, an attorney who Forbes believes is actually the exchange's general counsel."
In addition, the report claimed that the document "was created by former Binance employee Harry Zhou," co-founder of a crypto exchange based in San Francisco partially owned by Binance - Koi Trading. But short after the report was released, Changpeng Zhao (CZ) - CEO of Binance - tweeted that there were incorrect mentioned in the article about the statements and accusations:
"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."
Furthermore, CZ noted that Binance had "always operated within the boundaries of the law." He claimed that all the moves were "evidenced by the many international exchanges" that Binance had "helped launch" in countries, covering the U.S., UK, Singapore, Korea, Turkey, Jersey and etc.
In contrast to the article, Binance has always approached every location with proper licensing and applications.
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.
— CZ Binance (@cz_binance) October 29, 2020
Forbes noted that the so-called Tai Chi document was now widespread among law firms, accounting firms, and others related to Binance, and that it is likely for the US federal agencies such as the FBI and the IRS to take actions to investigate.