Binance’s CZ Denies Bloomberg Report on Trump-Backed USD1 Stablecoin

Binance co-founder and former CEO Changpeng “CZ” Zhao has rejected a current Bloomberg report linking him to a stablecoin issued by World Liberty Monetary (WLF), one of many crypto companies tied to US President Donald Trump.

In a post on X responding to the investigation, Zhao referred to as the article a “hit piece (sponsored by a competitor)” full of “so many factual errors” that he “doesn’t even know the place to start.” He added, “May need to sue them once more for defamation.”

The Bloomberg report claimed Binance developed the original smart contract code for USD1, a stablecoin issued by World Liberty Monetary, an organization affiliated with former President Donald Trump.

It additionally alleged that Zhao utilized for a presidential pardon shortly after USD1 was used in a $2 billion deal involving a UAE-based fund’s funding in Binance. Greater than 90% of USD1’s tokens reportedly stay in Binance wallets, doubtlessly producing tens of hundreds of thousands in annual curiosity income.

Associated: ‘Is this real?’ CZ questions TON’s UAE Golden Visa as gov’t sources stay silent

Bloomberg’s false Binance Ponzi claims

Zhao’s tweet referenced a earlier authorized dispute with Bloomberg, linking to a July 2024 apology from the publication’s Chinese language-language version.

The assertion retracted a 2022 article accusing Binance of working a Ponzi scheme, calling the headline “false and baseless.” On the time, Bloomberg agreed to make a charitable donation as a substitute of paying damages.

Zhao pleaded guilty to one felony count as a part of a settlement with US authorities in 2023. Though he had already served 4 months in jail, he mentioned in Might that he was seeking a presidential pardon from Trump. Such a pardon might doubtlessly permit Zhao to return to a managerial or operational position at a US crypto enterprise. 

Trump’s crypto ventures, together with World Liberty Monetary, his official memecoin, and crypto government marketing campaign contributions, have attracted scrutiny from US lawmakers since earlier than he took workplace.

Republican leaders within the Home are set to consider three crypto bills, together with the GENIUS Act, which regulates fee stablecoins. The invoice handed the Senate with bipartisan assist regardless of initial Democratic opposition because of Trump’s crypto pursuits.

Associated: Binance ties to Kenyan crypto board raise monopoly concerns: Report

Zhao’s beef with WSJ

In April, Zhao additionally dismissed a Wall Street Journal report that claimed he had agreed to supply proof in opposition to Tron founder Justin Solar as a part of a plea cope with the USA Division of Justice.