A brand new scandal has hit cryptocurrency alternate Binance, with the publication Bloomberg accusing the firm of writing the supply code for USD1, a stablecoin from World Liberty Monetary—a challenge reportedly linked to President Trump’s household. If true, the ties between the world’s largest alternate and the new U.S. administration could possibly be a lot deeper than they seem.
President Donald Trump and Binance founder Changpeng Zhao (CZ) Illustration. Supply: Getty Photographs; Bloomberg Information
In accordance with Bloomberg, which cites three nameless sources, Binance not solely enabled buying and selling of USD1 however was additionally a full-fledged creator of the stablecoin. Moreover, the alternate is allegedly concerned in selling USD1 and receives passive earnings from this association.
The numbers are hanging: USD1 has shortly reached a market capitalization of $2 billion, with its provide extraordinarily concentrated. Bloomberg studies that Binance is accountable for each the fast progress and the token’s focus.
If all these information are correct, they paint an fascinating image: Binance developed the code, purchased the tokens, and now holds most of USD1. This might indicate a direct connection to the Trump household, which might generate passive earnings from such a holding sample.
Extra particulars add to the suspicions. The alternate reportedly acquired $32.8 million value of a memecoin related to the president, and the incontrovertible fact that USD1 is listed on Binance suggests an in depth working relationship.
USD1 Stablecoin Efficiency on Binance. Supply: Binance
In response to the allegations, Binance founder Changpeng Zhao reacted sharply. He referred to as the article defamatory and threatened a lawsuit, however—importantly—didn’t deny any particular information from the investigation.
4. FUD. Bloomberg simply wrote one other hit piece (sponsored by a competitor) containing so many factual errors I do not even know the place to start.
Might need to sue them once more for defamation. https://t.co/FevGMArHj8
— CZ 🔶 BNB (@cz_binance) July 11, 2025
Different events concerned additionally prevented direct solutions. The White Home declined to touch upon the scenario. A Binance spokesperson merely famous that Zhao now not works for the firm. In the meantime, World Liberty Monetary accused Bloomberg of making an attempt to “push a political agenda.”
All of these responses share one factor: none immediately refute the particular factual allegations. As a substitute, the events selected to query journalists’ motives or level to formalities.
The core situation is that neither aspect has supplied ironclad proof. Bloomberg depends on nameless sources, making public verification not possible. Zhao and his staff, for their half, persist with normal statements with out addressing the substance of the accusations.
The story is additional sophisticated by the current actions of Binance’s former head. At first, he denied in search of a presidential pardon for his conviction in a cash laundering case, solely to later brazenly apply for one. Such contradictions don’t add credibility to his statements.
Wanting forward, the menace of a lawsuit from Changpeng Zhao might convey extra info to mild. If Bloomberg is required to current proof in court docket, the actual extent of Binance’s involvement in the creation of USD1 could lastly be revealed.
For now, the events proceed to commerce accusations whereas the public stays with out clear solutions. Rumors a couple of partnership between Binance and the Trump administration persist, however thus far, nobody has managed to show them into established information.
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