Key Takeaways:
- Binance founder CZ calls Bloomberg report on Trump-affiliated stablecoin ‘defamatory’.
- Bloomberg claims Binance created USD1 smart contract and Zhao sought pardon after UAE deal.
- CZ hints at a second lawsuit, reviving tensions after Bloomberg’s prior Ponzi scheme retraction.
A fresh controversy has reignited tensions between Binance’s co-founder Changpeng “CZ” Zhao and financial media giant Bloomberg, following a report that links Zhao to a stablecoin project tied to former U.S. President Donald Trump. In a post on X (formerly Twitter), CZ slammed the article as a “hit piece,” accused it of factual errors, and warned he may sue again.
CZ Denies Involvement in Trump-Linked Stablecoin
The dispute centers around USD1, a stablecoin issued by World Liberty Financial (WLF), a crypto firm reportedly affiliated with Donald Trump’s growing web3 interests. Bloomberg’s latest report claims Binance was the original developer of the smart contract code for USD1, and that Zhao later sought a presidential pardon following a $2 billion investment deal involving a UAE-based fund and Binance, in which the token was allegedly used.
According to Bloomberg, over 90% of USD1 tokens remain in Binance wallets, potentially earning tens of millions in annual interest, an assertion CZ outright denied. In his response, he wrote:
“FUD. Bloomberg just wrote another hit piece (sponsored by a competitor) containing so many factual errors I don’t even know where to begin. Might have to sue them again for defamation.”
The allegation, if proven true, would tie Binance and Zhao to Trump’s increasingly publicized crypto ventures, which include a memecoin and campaign financing from Web3 stakeholders.
Read More: CZ Sounds Alarm After Ledger Discord Hack Exposes Users to Phishing Trap
A Legal Feud Rekindled
This isn’t the first time Zhao has taken legal aim at Bloomberg. In 2022, Bloomberg Businessweek’s Chinese-language edition published a now-retracted story alleging Binance was operating a Ponzi scheme. In 2024, the outlet issued a formal apology and retracted the piece, admitting the headline was “false and baseless.” The apology, however, was noticeably absent from the English edition, something Zhao publicly criticized at the time.
While the prior dispute ended with Bloomberg making a charitable donation instead of paying monetary damages, CZ’s latest comments suggest he’s preparing for round two, this time over what he claims is intentional…
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