Binance Invests $200 Million in Forbes

Published on 10 Feb 2022

Binance Investment

Binance, "one of the world's top cryptocurrency and blockchain network providers," has revealed a $200 million worth investment in an "iconic business information brand," according to Forbes. That financing is part of a $400 million PIPE deal arranged for Forbes to go public by combining with a special purpose acquisitions company or SPAC.

A transaction is a watershed event for Web3 corporations, demonstrating how they've arrived at their "let's own a media outlet" moment, similar to Time Warner and AOL, or AT&T and Time Warner, or Verizon and AOL, you get the idea.

However, this agreement brings Binance and Forbes around each other, the media outlet it sued for defamation in 2020, trying to claim it did suffer millions of dollars in losses as a result of an article that claimed Binance's "elaborate corporate structure" has been "intended to intentionally deceive regulatory agencies and profit from crypto investors in the United States." 

See also: Types of Investments That Entrepreneurs Should Know

About The Case Against Forbes

Binance eventually dropped the case early last year, but the piece is still available. "Binance remains certain that the Forbes story from October 29, 2020, is inaccurate and deceptive," the business declared at the time.

Razzlekhan, or perhaps the Crocodile of Wall Street, nicknamed Heather Morgan, was detained this week by the Department of Justice, along with her husband, for trying to launder $3.6 billion in Bitcoin seized from Bitfinex.

What we learned from suspected Bitcoin embezzler Razzlekhan Binance's press release isn't vague about why it may invest in the news organization: "As Web3 and blockchain technologies go forward and the cryptocurrency market comes of age, we recognize that media is a crucial aspect of promoting wider consumer awareness and education," says CEO Changpeng 'CZ' Zhao.

Why Binance Invested In Forbes

The reason for Binance's interest in the media outlet isn't hidden in the company's press statement: "As Web3 & blockchain technologies go forward and the crypto market comes of age, we recognize that media is a crucial aspect of promoting widespread consumer understanding and education," says CEO Changpeng 'CZ' Zhao.

Throughout a completely separate interview with CNBC, Zhao was asked directly regarding investing in light of Morgan's recent incident. Zhao paused for a moment before explaining that "not every news organization is accessible for investments," while pointing out that Forbes' brand, impact, and prestige are powerful enough to exceed the effect of "one contributing writer who appears to be a hacker in her secret life. 


Featured image: Binance


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