Binance co-founder Changpeng Zhao, known as CZ, retweeted a post accusing Coinbase of being behind a Bloomberg article targeting both Donald Trump's crypto project and Binance itself. While Zhao neither confirmed nor denied the allegations, he labeled the publication as “a dirty hit piece.”
Coinbase Allegedly Initiated Bloomberg’s Article
On Sunday, crypto influencer and entrepreneur Matt Wallace published a post on X accusing Coinbase executives of attempting to discredit competitors. According to him, the company may have been the “anonymous” source behind Bloomberg’s article, which alleged a link between Binance and the USD1 token - a stablecoin associated with Trump’s World Liberty Financial project.
Wallace claimed that Coinbase feared a potential pardon of Zhao, as his return to the U.S. with a clean legal slate could threaten their market share. He also expressed outrage over the alleged attack on President Trump, calling it an “anti-American” move meant to weaken competition.
Zhao’s Response and the Content of Bloomberg’s Report
Zhao retweeted Wallace’s post without directly commenting on the accusations. He had previously criticized the Bloomberg article, calling it “sponsored” and “full of factual errors.” He also noted that he might file a defamation lawsuit, as he has done in the past.
According to Bloomberg, Binance allegedly created the smart contract for the USD1 token. The report further claimed that Zhao sought a presidential pardon shortly after a $2 billion deal involving a UAE-based fund. Bloomberg also stated that over 90% of the USD1 tokens remain on Binance wallets, generating tens of millions of dollars annually in interest income.
Background and Zhao’s Recent Moves
In 2023, Zhao pleaded guilty to a criminal charge in the U.S. and served a four-month sentence. In May, he confirmed that he was pursuing a pardon from Trump, which could potentially allow him to reengage in managing crypto companies in the United States.
Since his release, Zhao has focused on advising governments. On April 4, he signed a memorandum of cooperation with the Investment Promotion and Protection Agency of Kyrgyzstan. Just a few days later, on April 7, he became an advisor to the newly established Crypto Council in Pakistan, a regulatory body tasked with fostering the development of digital assets in the country.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.