Binance CEO Threatens Legal Action Over Trump Stablecoin Report

Changpeng Zhao, the former CEO of Binance, has indicated that he may take legal action against a prominent financial news outlet following a report that suggested Binance's involvement with a stablecoin backed by former U.S. President Donald Trump. This potential legal response underscores the escalating tensions between major media outlets and leaders in the cryptocurrency industry, which could have implications for Binance's market standing.

The controversy began when the outlet published an article linking Binance to the development of the USD1 stablecoin, alleging connections involving Donald Trump. Zhao has denied these allegations, describing the report as a "hit piece" filled with factual errors and raising concerns about defamation. The article further claimed that Binance holds the majority of USD1 tokens, potentially earning significant interest, and cited a $2 billion investment deal linked to Binance. These claims remain unverified by primary sources.

Zhao's response to these allegations was swift and decisive. He referenced a previous incident in July 2024, when the outlet retracted a 2022 report that falsely accused Binance of operating a Ponzi scheme. The outlet had issued an apology and made a charitable donation in lieu of damages. Zhao used this past controversy to bolster his argument, accusing the outlet of engaging in repetitive defamatory behavior.

Zhao's disputes with media outlets are not new. In April, he denied a report that claimed he had agreed to provide evidence against a prominent figure in the crypto industry in exchange for leniency. Zhao accused the outlet of being part of a smear campaign, suggesting bribery of reporters. He noted that cooperating witnesses typically do not face prison time, unlike himself, who had served four months.

The ongoing scrutiny of crypto ventures linked to political figures has sparked broader discussions about the regulation and transparency of the crypto industry. The controversy highlights the complex interplay between politics, media, and the rapidly evolving world of cryptocurrencies. Zhao has not given up and disclaims the connection with the Trump-linked stablecoin. He states he will defend his name and the reputation of Binance. Consequently, the conflict between Zhao and the outlet might not conclude quickly.