Binance Founder Rejects Allegations

Changpeng "CZ" Zhao, former CEO of Binance, has vehemently denied a Bloomberg report linking him to a Trump-affiliated stablecoin project. In a social media post, Zhao threatened legal action against the financial news giant, calling their investigation a "hit piece" filled with factual errors.

Controversial Stablecoin Claims

The disputed report alleged Binance developed the smart contract for USD1, a stablecoin issued by World Liberty Financial (WLF) - a company connected to former U.S. President Donald Trump. Bloomberg further claimed 【90% of USD1 tokens】 remain in Binance wallets, potentially generating significant interest revenue.

——"Might have to sue them again for defamation,"—— Zhao stated on X, referencing a prior legal victory where Bloomberg retracted false Ponzi scheme allegations against Binance in 2024.

Political Pardon Context

The controversy emerges as Zhao seeks a presidential pardon following his 2023 guilty plea for anti-money laundering violations. Such a pardon could enable his return to crypto leadership roles in the U.S. - timing that has drawn scrutiny given Trump's growing crypto industry involvement.

Regulatory Implications

Republican lawmakers are currently considering three cryptocurrency bills, including the GENIUS Act regulating stablecoins. The legislation has faced Democratic opposition due to concerns about Trump's crypto ventures, creating a complex political backdrop for these allegations.

Media Battle History

This marks Zhao's second high-profile media dispute in 2025, following his April dismissal of Wall Street Journal claims about his plea deal. ——"People who become government witnesses don't go to prison,"—— he countered at the time, suggesting ulterior motives behind the reporting.

As of press time, Bloomberg maintains its reporting stands while Binance has not filed formal legal documents. The situation highlights increasing tensions between crypto leaders and traditional financial media amid growing regulatory scrutiny.