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Crypto mogul Changpeng "CZ" Zhao has ignited a firestorm of speculation by retweeting claims that Coinbase was the anonymous source behind a recent Bloomberg report targeting Donald Trump's crypto project and Binance. The allegations suggest Coinbase sought to undermine competitors, fearing Binance's potential return to the US market.
Key Takeaways
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CZ retweeted claims accusing Coinbase of being the anonymous source behind a Bloomberg report targeting Trump's crypto project and Binance.
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The Bloomberg report linked Binance to the USD1 stablecoin and alleged CZ sought a pardon after a major deal involving USD1.
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CZ dismissed the Bloomberg article as a "hit piece" with "factual errors" and threatened legal action.
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Coinbase's Chief Legal Officer, Paul Grewal, explicitly denied any involvement in the Bloomberg story, calling the claims "pure misinformation."
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The controversy highlights the intense competition and political sensitivities within the cryptocurrency industry.
CZ Fuels Controversy Over Bloomberg's Trump Stablecoin Report
Binance co-founder and former CEO Changpeng "CZ" Zhao recently amplified a tweet from crypto commentator Matt Wallace, alleging that Coinbase was the undisclosed source for a Bloomberg report. This report scrutinized World Liberty Financial, a crypto project linked to Donald Trump, and Binance itself. Wallace's tweet posited that Coinbase executives were concerned about a potential presidential pardon for Zhao and Binance's re-entry into the US market, which could threaten their market share. He further claimed that Coinbase's alleged actions against Trump were an attempt to harm competitors, labeling it "anti-American."
The Bloomberg Report's Allegations
The Bloomberg article at the heart of this controversy made several key claims:
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Binance allegedly developed the smart contract for USD1, a stablecoin issued by World Liberty Financial and associated with Donald Trump.
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Zhao reportedly sought a presidential pardon shortly after USD1 was used in a significant $2 billion deal involving a UAE fund's investment in Binance.
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Over 90% of USD1 tokens are said to remain in Binance wallets, potentially generating substantial annual interest revenue.
CZ's Response and Legal Threats
Zhao, while retweeting Wallace's claims without explicit confirmation or denial, vehemently dismissed the Bloomberg article as a "hit piece (sponsored by a competitor)" riddled with "so many factual errors." He even suggested the possibility of suing for defamation again. This comes after Zhao pleaded guilty to a felony count in 2023 and served four months in prison. He has openly stated his pursuit of a presidential pardon from Trump, which could enable his return to a managerial role in the US crypto sector.
Coinbase Denies Involvement
In response to the swirling rumors, Coinbase's Chief Legal Officer, Paul Grewal, publicly denied the allegations on social media. Grewal stated, "Sorry — this is pure misinformation. We absolutely did not contribute to this story. We don't attack competitors, and we welcome any businesses that share our goal of growing the crypto pie."
Sources
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Binance Founder Accuses Coinbase of Targeting Trump Crypto Project, AInvest.
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CZ shares rumors linking Coinbase to Bloomberg’s Trump stablecoin report — TradingView News, TradingView.
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CZ Retweets Claims Coinbase Behind Bloomberg’s Trump Stablecoin Report, Cointelegraph.
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CZ Retweets Claims Coinbase Behind Bloomberg’s Trump Stablecoin Report, StartupNews.fyi.
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