CZ Threatens Lawsuit Against Bloomberg Over Trump Stablecoin Report

Binance co-founder Changpeng "CZ" Zhao is threatening legal action against Bloomberg over a report linking him to a stablecoin associated with Donald Trump. CZ vehemently denied the article's claims, calling it a "hit piece" filled with "factual errors" and suggesting a competitor sponsored it. This dispute reignites past tensions between CZ and the media outlet.

Key Takeaways

CZ denies Binance's involvement in the creation or significant holding of the Trump-linked USD1 stablecoin.
He views the Bloomberg report as a "hit piece" with numerous factual inaccuracies.
CZ is considering a defamation lawsuit against Bloomberg, citing a past retraction by the publication.
The controversy highlights ongoing scrutiny of Trump's crypto ventures and the broader regulatory landscape for stablecoins.

CZ Blasts Bloomberg Over "Factual Errors"

Changpeng "CZ" Zhao, former CEO of Binance, took to X (formerly Twitter) to express his outrage over a recent Bloomberg report. The article alleged that Binance played a role in creating the smart contract for USD1, a stablecoin issued by World Liberty Financial (WLF), a company linked to Donald Trump. Furthermore, the report claimed that over 90% of USD1 tokens remained in Binance wallets, potentially generating significant interest, and that CZ sought a presidential pardon after a $2 billion investment deal involving the stablecoin.

CZ dismissed these allegations as "FUD" and a "hit piece," stating it contained "so many factual errors I don't even know where to begin." He hinted at a potential defamation lawsuit, referencing a previous legal victory against Bloomberg's Chinese-language edition in July 2024, where the outlet apologized for a 2022 article falsely accusing Binance of running a Ponzi scheme.

Trump's Crypto Ventures Under Scrutiny

The Bloomberg report comes amidst increasing attention from U.S. lawmakers on Donald Trump's various crypto ventures, including World Liberty Financial and his official memecoin. These financial entanglements have raised questions about potential conflicts of interest and the use of political influence.

Congress is currently reviewing three crypto bills, including the GENIUS Act, which aims to regulate payment stablecoins. While the GENIUS Act passed the Senate with bipartisan support, its passage in the House remains uncertain, partly due to concerns surrounding Trump's crypto interests.

CZ's History With Media Disputes

This is not the first time CZ has publicly challenged media reports. In April 2025, he refuted a Wall Street Journal article that claimed he had agreed to provide evidence against TRON founder Justin Sun as part of his legal settlement with the U.S. Department of Justice. CZ sarcastically noted that government witnesses typically do not serve prison time, implying the report was inaccurate given his own four-month sentence.

The ongoing disputes underscore the volatile relationship between prominent figures in the crypto industry and traditional media outlets, often fueled by differing perspectives on digital finance and its political implications.

Sources

CZ Threatens Bloomberg With Lawsuit Over Trump USD1 Stablecoin Rep…, CoinChapter.
Binance Helped Create World Liberty Financial Stablecoin — Report, Cointelegraph.
Why Is Binance’s CZ Suing Bloomberg?, StartupNews.fyi.
Binance’s CZ Denies Bloomberg Report on Trump-Backed USD1 Stablecoin, Cointelegraph.
Why Is Binance's CZ Suing Bloomberg?, Coinpedia.

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