Photo credit: David Ryder/Bloomberg

Modern Media CL, the Hong Kong publisher of Bloomberg Businessweek, has publicly apologized for mistranslating a headline in its Chinese edition, which painted former Binance CEO Changpeng Zhao as running a “Ponzi scheme.”

The “mistake” stems back from Bloomberg Businessweek’s June 2022 profile of Zhao titled, “Can Crypto’s Richest Mand Stand the Cold?” However, the Chinese version from Modern Media ran the headline that translates to “Changpeng Zhao’s Ponzi Scheme.”

Zhao has since filed a lawsuit against the publisher, demanding a retraction and a restraining order against further dissemination of the portrayal. Modern Media has reportedly partially complied with these demands at the time.

“We made the egregious mistake of publishing a cover page with a headline that was false and baseless, Modern Media said on July 17. “We retract and withdraw this offending statement without reservation and apologize unreservedly for any harm or distress caused to Mr. Zhao and Binance.”

The publisher committed to upholding higher journalistic standards and avoiding any similar allegations in the future. They also pledged to donate an undisclosed sum to the Songzi, Hubei Province Special Education Foundation as a gesture of goodwill.

In response, a Binance spokesperson reportedly expressed relief with the apology and retraction, reiterating the crypto exchange’s commitment to user service, while emphasizing the importance of responsible reporting for the industry’s overall development.

Binance’s legal woes

While previously known for an aggressive image protection strategy, Zhao has faced recent legal challenges in the United States. He pleaded guilty to financial crimes in 2023 and was sentenced to four months in jail earlier this year. Often referred to as “CZ,” he stepped down as Binance CEO as part of his $4.3 billion guilty plea, with Richard Teng, the company’s former head of regional markets, assuming the role.

The world’s largest exchange by trading volume also faces challenges in Nigeria. Binance faces four counts of tax evasion while two of its executives, including Tigran Gambaryan, head of financial crimes compliance, have been charged with money laundering. Gambaryan’s health has deteriorated during the trial, leading to delays and concerns about his well-being. A verdict in the case is expected in October.

Read more: India’s Financial Intelligence Unit slaps $2.3M fine on Binance