Binance Founder CZ Zhao Denounces Allegations of Trump Stablecoin Involvement

Binance founder and former CEO Changpeng “CZ” Zhao has strongly refuted recent allegations, labeling them as a deliberate attempt to spread fear, uncertainty, and doubt (FUD). Zhao's response came in reaction to a report that suggested his involvement in a stablecoin project backed by former U.S. President Donald Trump. The report claimed that Binance had written the smart contract code for the USD1 stablecoin, launched by World Liberty Financial, a group with ties to the Trump family. Additionally, the report alleged that Zhao had sought a U.S. presidential pardon following the use of the cryptocurrency in a $2 billion investment fund deal in the United Arab Emirates.

Zhao took to the social media platform X to express his dismay, stating that the report contained numerous falsehoods and was part of a smear campaign supported by a rival. He indicated that he might take legal action, potentially filing a defamation lawsuit. This is not the first time Zhao has had to defend himself against such allegations. In July 2024, a prominent news outlet published an apology for a 2022 report that falsely accused Binance of running a Ponzi scheme. The outlet admitted that the report was “false and baseless” and chose to make a charitable donation instead of providing compensation.

The report also suggested that a significant portion of the USD1 stablecoin's supply is held in Binance wallets, which could potentially generate tens of millions of dollars in interest income for the exchange annually. However, Zhao's response focused on the inaccuracies and malicious intent behind the report, rather than addressing the financial implications. His strong reaction underscores the ongoing challenges faced by cryptocurrency exchanges in navigating the complex landscape of media scrutiny and regulatory oversight.

Zhao's defiant stance against the allegations highlights the broader issue of misinformation and defamation in the cryptocurrency industry. The spread of FUD can have significant impacts on public perception and market stability, making it crucial for industry leaders to address such claims promptly and decisively. Zhao's willingness to consider legal action sends a clear message that he will not tolerate baseless accusations and is prepared to defend his reputation and the integrity of his company.

This incident also raises questions about the role of media in shaping public opinion and the potential for rivalries within the industry to influence reporting. The cryptocurrency sector is highly competitive, and allegations of this nature can be used as tools to undermine competitors. Zhao's experience serves as a reminder of the importance of vigilance and the need for robust legal frameworks to protect against defamatory claims. As the industry continues to evolve, it will be essential for leaders like Zhao to remain steadfast in their commitment to transparency and accountability, ensuring that the sector can grow and thrive in a fair and ethical manner.