Binance co-founder and former CEO Changpeng “CZ” Zhao has stirred attention online by reposting a viral tweet. The post accuses Coinbase of being behind Bloomberg’s recent article linking Binance and Trump’s stablecoin project, World Liberty Financial. The report has created an argument in the crypto world concerning competition, politics, and the implications of regulations.
CZ Reposts Allegation Tying Coinbase to Trump Stablecoin Report
On Sunday, Zhao reposted a tweet from crypto commentator Matt Wallace alleging that Coinbase leaked information to Bloomberg. The report in question alleged that Binance developed the smart contract for USD1, a stablecoin associated with Trump’s World Liberty Financial.
Wallace claimed that Coinbase sought to damage Binance’s image to protect its U.S. market position. “Binance is the world’s #1 crypto exchange,” Wallace wrote, adding that a fully compliant return by Binance could harm Coinbase’s business. Wallace further criticized the reported link between Coinbase and Bloomberg’s coverage of Trump’s project. “Will Coinbase fess up and face the heat for their poor decision?” he asked.
While Zhao did not directly confirm or deny the post’s claims, his repost brought attention to the allegations. Both Binance and Coinbase were reached out to, but had not received any comment at the time of publication.
Coinbase Responds to CZ-Linked Allegations Amid Trump Stablecoin Buzz
Coinbase’s Chief Legal Officer, Paul Grewal, denied the claim on X. “Sorry — this is pure misinformation,” he wrote. Grewal emphasized that Coinbase had no role in the Bloomberg article and stated, “We did not contribute to this story.” He added, “We don’t attack competitors, and we welcome any businesses that share our goal of growing the crypto pie.”
Sorry— this is pure misinformation. We absolutely did not contribute to this story.
We don't attack competitors, and we welcome any businesses that share our goal of growing the crypto pie.
You should keep looking for an actual source. https://t.co/OoJIEVqntS
— paulgrewal.eth (@iampaulgrewal) July 13, 2025
The original Bloomberg report claimed that Zhao had requested a presidential pardon shortly after USD1 was used in a $2 billion transaction. That deal allegedly involved a UAE fund investing in Binance. The report also stated that over 90% of USD1 tokens remain in Binance-controlled wallets, potentially generating millions in interest.
In response, Zhao called the report a “hit piece (sponsored by a competitor).” He claimed there were “so many factual errors” that he might consider legal action.
Zhao Pursues Pardon as Binance Faces U.S. Market Scrutiny
The case is of Zhao, that did not stop grabbing attention after his legal settlement in 2023. He had to accept a guilty plea with one single felony count and spend four months in the prison. He has since then claimed to be in a quest to receive a pardon by former President Trump.
A pardon could allow Zhao to re-enter the U.S. crypto market in an operational role. Meanwhile, he has stayed active internationally. In April, he began advising Kyrgyzstan and joined Pakistan’s newly formed Crypto Council.
The allegations, denials, and reposts come at a time of increased political attention on crypto policy in the U.S. The growing involvement of crypto in political platforms, including Trump-linked stablecoins, continues to drive sharp reactions across the industry.
