Coinbase Denies Involvement in Binance-Trump Stablecoin Report

Coinbase has strongly refuted claims that it was involved in a report linking Binance to a stablecoin project associated with former U.S. President Donald Trump. The controversy erupted when a crypto influencer, Matt Wallace, posted allegations on social media, suggesting that Coinbase was the anonymous source behind the report. Wallace's post, which lacked concrete evidence, proposed that Coinbase's motivation stemmed from concerns that Binance, currently restricted from full operation in the U.S., could regain market access if Trump pardons its former CEO, Changpeng Zhao. This speculation intensified when Zhao reposted Wallace’s allegations without comment.

In response to these allegations, Coinbase's chief legal officer, Paul Grewal, took to social media to address the rumors. Grewal described the claims as "pure misinformation" and asserted that Coinbase had not contributed to the story. He emphasized that Coinbase does not engage in attacking competitors and supports any business that contributes to the growth of the crypto industry. Grewal urged the public to seek the actual source of the information, reinforcing Coinbase's stance on the matter.

The report in question, published on July 11, detailed that Binance had assisted in developing the USD1 stablecoin issued by World Liberty Financial, a company linked to Trump. The article also mentioned that the token was used in a $2 billion investment in Binance by a UAE-based investment fund, with more than 90% of USD1 remaining in Binance wallets. Additionally, the report noted that Zhao is seeking a pardon after pleading guilty in 2023 to violating anti-money-laundering laws. Zhao dismissed the article as "FUD" (fear, uncertainty, and doubt) and claimed it was "sponsored by a competitor," accusing the news outlet of publishing factual errors. He suggested he might take legal action for defamation, similar to a prior dispute with the outlet in 2024.

Neither World Liberty Financial nor the White House responded to questions regarding the report. The article cited unnamed sources and blockchain data but provided no indication that Coinbase was involved. The situation highlights the ongoing tensions and competitive dynamics within the crypto industry, where allegations and counter-allegations can significantly impact public perception and market dynamics. The denial by Coinbase and the subsequent statements by Zhao underscore the importance of accurate reporting and the potential consequences of misinformation in the rapidly evolving world of cryptocurrency.