CZ Denies Trump Stablecoin Links
CZ Denies Bloomberg Report on Trump-Linked Stablecoin
Binance CEO Changpeng "CZ" Zhao has vehemently denied a recent Bloomberg report connecting him to a stablecoin, USD1, issued by World Liberty Financial (WLF), a company with ties to former US President Donald Trump. In a post on X (formerly Twitter), Zhao dismissed the article as a "hit piece (sponsored by a competitor)" riddled with inaccuracies, stating, "Might have to sue them again for defamation."
Bloomberg's report alleged that Binance developed the smart contract code for USD1 and that Zhao sought a presidential pardon after USD1 was involved in a $2 billion deal with a UAE-based fund investing in Binance. The report further claimed that over 90% of USD1 tokens remain in Binance wallets, potentially generating significant interest revenue.
Bloomberg's Accusations and CZ's Rebuttal
Zhao's denial references a prior legal battle with Bloomberg, citing a 2024 apology from the publication's Chinese-language edition for a 2022 article falsely accusing Binance of operating a Ponzi scheme. This apology included a charitable donation in lieu of damages.
While Zhao pleaded guilty to a felony charge in 2023 as part of a settlement with US authorities, his past pursuit of a presidential pardon from Trump, and the potential implications for his role in a US crypto business, adds another layer to this controversy. Trump's various crypto ventures have already faced scrutiny from US lawmakers.
Political and Regulatory Implications
The USD1 situation unfolds against a backdrop of increased regulatory scrutiny of stablecoins. The US Congress is currently considering legislation, including the GENIUS Act, aimed at regulating payment stablecoins. This legislation initially faced opposition due to Trump’s crypto affiliations but has since gained bipartisan support.
Further Disputes with Media Outlets
This isn't the first time Zhao has publicly refuted media reports. In April, he dismissed a Wall Street Journal article alleging he provided evidence against Tron founder Justin Sun as part of a plea deal. Zhao stated on X, "WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn’t. I heard someone paid WSJ employees to smear me."
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