CZ Slams Bloomberg Over Trump Stablecoin Claim
Binance CEO CZ Fires Back at Bloomberg Over Trump Stablecoin Allegations
Binance CEO Changpeng Zhao ("CZ") has strongly refuted a recent Bloomberg report alleging Binance's involvement in USD1, a stablecoin linked to former US President Donald Trump's World Liberty Financial (WLF).
CZ, in a post on X (formerly Twitter), denounced the article as a "hit piece," citing numerous factual inaccuracies and suggesting it was driven by competitors. He hinted at the possibility of another lawsuit against Bloomberg for defamation, recalling a previous instance where Bloomberg apologized and retracted an article labeling Binance a Ponzi scheme.
Bloomberg's Claims
- Binance coded USD1: Bloomberg claims Binance developed the smart contract code for USD1, citing unnamed sources.
- Binance holds majority of USD1 supply: The report alleges Binance controls over 90% of the USD1 supply, potentially generating significant interest income.
- Conflict of interest concerns: Critics suggest the involvement of Binance, a major crypto exchange, with a Trump-affiliated stablecoin raises significant conflicts of interest.
Bloomberg's article also mentions CZ's past conviction for failing to comply with anti-money laundering regulations, suggesting a possible connection between this and the alleged involvement in USD1.
CZ's Rebuttal and Past Media Disputes
CZ's response not only rejects the accusations but also highlights previous clashes with media outlets. He references a previous apology from Bloomberg and a separate dispute with the Wall Street Journal (WSJ) over similar allegations of involvement with WLF. He accuses both publications of biased and unfounded reporting.
The crypto community closely watches this developing conflict. The potential legal battle could significantly impact investor confidence in the sector. At Codeum, we prioritize transparency and security in the blockchain space. We offer a range of services, including smart contract audits, KYC verification, and custom smart contract development, ensuring the integrity and safety of blockchain projects. We partner with launchpads and crypto agencies, providing comprehensive security solutions.
The Implications
The ongoing dispute between CZ and Bloomberg highlights the challenges of navigating the complex and often volatile world of cryptocurrency and media scrutiny. The outcome of this conflict will undoubtedly shape the narrative surrounding Binance and the broader crypto landscape.