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Binance's CZ Fuels Speculation Over Coinbase Role in Trump Stablecoin Controversy

Time :2025-07-14 02:43:15   key word: Binance, Coinbase, Trump stablecoin, Bloomberg report, CZ

Rumors Swirl as Binance Founder Shares Allegations

Former Binance CEO Changpeng "CZ" Zhao has amplified unverified claims that Coinbase executives anonymously sourced a Bloomberg report criticizing Donald Trump's cryptocurrency initiative. The July 13 social media activity comes amid growing tensions between the rival exchanges, with Binance facing renewed scrutiny over its alleged involvement in the World Liberty Financial stablecoin project.

The Controversial Tweet

Crypto commentator Matt Wallace asserted in a since-deleted post that Coinbase feared Binance's potential return to the U.S. market under a possible Trump presidency. "Binance's reinstatement with full legal status could devastate Coinbase's market position," Wallace claimed, suggesting the exchange targeted Trump's campaign to undermine competition. Zhao's decision to repost without commentary has fueled industry speculation, though Coinbase Chief Legal Officer Paul Grewal swiftly denied involvement, calling the allegations "pure misinformation."

Bloomberg's Explosive Report

The disputed article linked Binance to the technical infrastructure behind USD1, a stablecoin associated with Trump's political operation. Investigative findings indicated 【90%】 of USD1 tokens remain in Binance-controlled wallets, potentially generating millions in annual yield. Zhao dismissed the piece as a "competitor-sponsored hit job" containing numerous factual errors, threatening legal action against the financial publication.

Political Pardon Dynamics

The controversy emerges as Zhao seeks clemency from the former president, having served four months for 2023 AML violations. ——A successful pardon could permit Zhao's return to U.S. crypto operations——, dramatically reshaping the exchange landscape. Meanwhile, the Binance founder has assumed advisory roles for Kyrgyzstan and Pakistan's emerging crypto frameworks, maintaining global influence despite legal constraints.

Market Implications

Industry analysts note the timing coincides with 【Coinbase's 23% Q2 market share】 erosion against offshore rivals. The allegations, whether substantiated or not, highlight intensifying competition as regulatory climates shift. Both exchanges declined immediate comment when contacted by Cointelegraph, though blockchain analysts suggest on-chain data may soon provide clearer evidence regarding USD1's origins.