Binance Co-Founder Denies Trump Stablecoin Link, Threatens Legal Action

Binance’s co-founder Changpeng “CZ” Zhao has publicly criticized a recent report by a prominent financial media outlet, accusing it of containing factual errors and defamatory content. The report in question links Zhao to a stablecoin project associated with former U.S. President Donald Trump, specifically World Liberty Financial’s USD1 stablecoin. According to the report, Binance was allegedly involved in the development of the smart contract code for USD1, and Zhao sought a presidential pardon following a significant investment deal involving a UAE-based fund and Binance, in which the token was purportedly used.

CZ vehemently denied these allegations, describing the report as a “hit piece” and warning of potential legal action. He stated that the article contained numerous factual inaccuracies and suggested that it was sponsored by a competitor. The dispute has reignited tensions between Zhao and the media outlet, following a previous controversy in 2022 where the outlet retracted a story alleging Binance was operating a Ponzi scheme. The outlet issued a formal apology and retracted the piece, admitting the headline was “false and baseless.” However, the apology was not published in the English edition, which Zhao publicly criticized at the time.

The current controversy has broader implications, as it connects crypto regulation, political influence, and financial media. The report alleges that Zhao applied for a pardon shortly after a UAE fund used USD1 in a $2 billion deal with Binance, raising questions about whether digital assets are being used to navigate or influence regulatory oversight. This comes at a time when Trump’s pro-crypto stance is influencing U.S. legislative direction, with Republican lawmakers pushing forward the GENIUS Act, a bill aimed at regulating stablecoins and payment tokens. This context makes the reporting not just reputationally damaging but also politically sensitive.

World Liberty Financial, the firm behind USD1, has drawn scrutiny for its close ties to Trump, whose crypto interests have expanded rapidly in recent months. In addition to USD1, Trump has been linked to an official memecoin promoted by his campaign backers, crypto-donor fundraising events, and multiple statements signaling strong support for Bitcoin mining and stablecoin innovation in the U.S. However, no direct evidence has surfaced showing Trump himself profiting from the issuance of USD1.

Beyond this dispute, Zhao has had wider conflicts with media outlets and regulators. In April 2025, he dismissed a report claiming he agreed to testify against Justin Sun, founder of TRON, as part of a plea deal with U.S. authorities. CZ responded bluntly, suggesting that the report was an attempt to smear his reputation. The former Binance CEO, who pleaded guilty to a felony in late 2023 as part of a $4.3 billion settlement with the U.S. Department of Justice, served a four-month prison sentence earlier this year. He has since returned to social media with occasional posts and is reportedly seeking a presidential pardon, which has fueled speculation about his potential links with Trump.