Changpeng “CZ” Zhao, the founder and former CEO of global crypto exchange Binance, has publicly refuted a Bloomberg report alleging his involvement with a stablecoin connected to US President Donald Trump. In a fiery social media post, Zhao dismissed the article as a “hit piece” and signaled a potential new legal battle with the media giant.
The controversy centers on a Bloomberg investigation claiming that Binance was instrumental in developing the smart contract for USD1, a stablecoin issued by World Liberty Financial (WLF), a company linked to Trump’s business interests. The report further alleged that over 90% of USD1 tokens are held in Binance wallets, which could be generating substantial interest revenue for the exchange.
Bloomberg also connected these developments to Zhao’s recent bid for a presidential pardon from Trump, suggesting a quid pro quo. Zhao, who served a four-month prison sentence in the US after pleading guilty to anti-money laundering violations in 2023, is seeking a pardon that could clear his path to re-enter the US crypto industry in a leadership capacity.
In his response on X (formerly Twitter), Zhao did not hold back. “So many factual errors in this hit piece (sponsored by a competitor), I don’t even know where to begin,” he stated, adding pointedly, “Might have to sue them again for defamation.”
A History of Media Battles
Zhao’s threat to sue is not an empty one. He referenced a previous legal confrontation with Bloomberg. In 2022, a headline from the publication’s Chinese-language edition labeled Binance a “Ponzi scheme.” Following legal action from Zhao, Bloomberg issued a public apology in July 2024, retracting the headline as “false and baseless” and agreeing to make a charitable donation.
This isn’t Zhao’s only recent clash with the press. In April, he pushed back against a Wall Street Journal report that claimed he had agreed to provide evidence against Tron founder Justin Sun as part of his plea deal with the US Department of Justice, calling the allegations baseless.
The Political Backdrop: Crypto Meets Washington
The allegations surface at a critical time when the crypto industry’s ties to politics are under intense scrutiny. Trump’s own ventures in the digital asset space, including his memecoin and fundraising from crypto executives, have drawn attention from lawmakers.
Simultaneously, US Congress is actively debating crypto regulation, including the GENIUS Act, a bill focused on payment stablecoins. The intersection of Zhao, Binance, and a Trump-affiliated financial product adds another layer of complexity to an already charged political environment, highlighting the growing convergence of high-finance, technology, and political power.
