SEC Says Binance Implemented ‘Tai Chi’ Plan
The US Securities and Exchange Commission (SEC) has stated in its recent legal filing that Binance implemented much of the so-called “Tai Chi plan” in setting up its US entity.
This plan, which was initially exposed in a Forbes article, suggests creating an entity to slow and resolve any disputes with regulators.
Binance’s CEO Changpeng Zhao is alleged to have said that the exchange had talked to law firms to suggest a more conservative approach, although the SEC now claims much of the plan was followed through.
The alleged architect of the plan, Harry Zhou, is the co-founder of the San Francisco-based exchange Koi Trading which is funded by Binance.
However, Binance denied the report when it was first published and even filed a lawsuit against Forbes, which was later dropped.
