Binance Founder Accuses Coinbase of Targeting Trump Crypto Project

Binance co-founder and former CEO Changpeng “CZ” Zhao has shared a tweet alleging that Coinbase was the “anonymous” source behind a report targeting Trump’s crypto project, World Liberty Financial, and Binance. The tweet, posted by crypto commentator Matt Wallace, suggested that Coinbase executives feared a potential pardon for Zhao and Binance’s return to the US market would threaten their market share, prompting efforts to undermine competitors. Wallace warned that Binance’s return with full legal status could severely damage Coinbase’s business. He also expressed shock that Coinbase would target Trump in an attempt to hurt their competition, labeling it as anti-American. Zhao retweeted the post without confirming or denying it.

Bloomberg’s report alleged that Binance developed the smart contract for USD1, a stablecoin issued by World Liberty Financial, linked to Donald Trump. The report also claimed Zhao applied for a presidential pardon shortly after USD1 was used in a $2 billion deal involving a UAE fund’s investment in Binance. It noted that over 90% of USD1 tokens remain in Binance wallets, potentially generating tens of millions in annual interest revenue. Zhao, however, called the article a “hit piece (sponsored by a competitor)” filled with “so many factual errors” that he “doesn’t even know where to begin.” He added, “Might have to sue them again for defamation.”

Zhao pleaded guilty to one felony count as part of a settlement with US authorities in 2023. Although he had already served four months in prison, he said in May that he was seeking a presidential pardon from Trump. Such a pardon could potentially allow Zhao to return to a managerial or operational role at a US crypto business. Zhao has been busy since his release, advising Kyrgyzstan on blockchain and crypto-related regulation and serving as an adviser to Pakistan’s Crypto Council, a newly formed regulatory body tasked with overseeing the country’s embrace of blockchain technology and digital assets.

The controversy highlights the complex interplay between politics, media, and the rapidly evolving world of cryptocurrencies. The ongoing scrutiny of crypto ventures linked to Trump’s family has sparked broader discussions about the regulation and transparency of the crypto industry. 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 Bloomberg might not conclude quickly.