Binance co-founder accuses Coinbase of targeting Trump 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 former U.S. President Donald Trump's cryptocurrency project, World Liberty Financial, and Binance. The tweet, originally posted by crypto commentator Matt Wallace, suggested that Coinbase executives feared a potential pardon for Zhao and Binance’s return to the U.S. market would threaten their market share, prompting efforts to undermine competitors.

Wallace’s post highlighted the potential impact of Binance’s return to the U.S. market with full legal status, warning that it 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 the allegations. Both Binance and Coinbase were reached out for comment but had not responded by the time of publication.

The report in question alleged that Binance developed the smart contract for USD1, a stablecoin issued by World Liberty Financial, linked to Donald Trump. It also claimed that Zhao applied for a presidential pardon shortly after USD1 was used in a $2 billion deal involving a UAE fund’s investment in Binance. The report noted that over 90% of USD1 tokens remain in Binance wallets, potentially generating tens of millions in annual interest revenue.

In response to the report, Zhao called it a “hit piece (sponsored by a competitor)” filled with “so many factual errors” that he “doesn’t even know where to begin.” He added that he might have to sue the news outlet again for defamation. Zhao had pleaded guilty to one felony count as part of a settlement with U.S. 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 U.S. crypto business.

Since his release, Zhao has been actively involved in advising various countries on blockchain and crypto-related regulation. On April 4, he said he would begin advising Kyrgyzstan on these matters after signing an MOU with the country’s foreign investment agency. On April 7, Zhao was appointed 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 surrounding the report and CZ's allegations has raised questions about the ethics of journalism and the role of anonymous sources in reporting. Some have argued that the use of anonymous sources can lead to the spread of misinformation, while others have defended the practice as a necessary tool for investigative journalism. The debate has also highlighted the intense competition within the cryptocurrency industry, as companies vie for market share and dominance.

The situation has also raised concerns about the potential for political interference in the cryptocurrency industry. The allegations that Binance was involved in a crypto project backed by Trump have sparked fears that the industry could be used as a tool for political gain. The controversy has also highlighted the need for greater transparency and accountability within the industry, as companies and individuals seek to build trust with investors and regulators.