Binance Founder Denies Trump-Linked Stablecoin Allegations

Binance co-founder and former CEO Changpeng “CZ” Zhao has strongly refuted claims made in a recent article that linked him and Binance to USD1, a stablecoin launched by World Liberty Financial (WLF), a crypto firm with ties to former U.S. President Donald Trump. Zhao, in a post on the social media platform X, described the article as a “hit piece” allegedly funded by a competitor, asserting that it contained numerous factual inaccuracies. He went on to threaten legal action, stating, “Might have to sue them again for defamation.”

The article in question made several claims, including that Binance developed the original smart contract for USD1 and that Zhao had requested a U.S. presidential pardon following a $2 billion transaction involving a UAE-based fund that invested in Binance. Additionally, it was alleged that over 90% of USD1 tokens remained in wallets controlled by Binance, potentially generating tens of millions of dollars in interest annually.

Zhao’s response to these allegations was swift and decisive. He referenced a previous incident in July 2024, when Bloomberg retracted a 2022 Chinese-language report that falsely accused Binance of operating a Ponzi scheme. Bloomberg had issued an apology and made a charitable donation in lieu of damages. Zhao used this past controversy to bolster his argument, accusing Bloomberg 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 Tron founder Justin Sun in exchange for leniency. Zhao accused the outlet of being part of a smear campaign, suggesting bribery of reporters. He tweeted, “WSJ is really TRYING here,” noting that cooperating witnesses typically do not face prison time, unlike himself, who had served four months.

The ongoing scrutiny of crypto ventures linked to Trump’s family 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 Bloomberg might not conclude quickly.