Thomas Daniels
Binance co‑founder and former CEO Changpeng “CZ” Zhao has strongly rebuked a recent Bloomberg article that tied him to USD1, a stablecoin issued by Trump-affiliated World Liberty Financial (WLF). CZ labeled the piece a “hit piece (sponsored by a competitor)” riddled with “so many factual errors” and signaled intentions to pursue legal action for defamation.
In response on X, Zhao asserted he “doesn’t even know where to begin,” suggesting Bloomberg’s claims are baseless. He reaffirmed his readiness to sue, referencing a previous resolution in July 2024 when Bloomberg’s Chinese-language division issued an apology and retracted a Ponzi-scheme allegation, opting to donate to charity in lieu of damage payments.
Bloomberg had alleged that Binance developed the original smart contract code for USD1, used in a $2 billion transaction involving a UAE-based investor. The report also claimed Zhao sought a presidential pardon from Trump shortly after this transfer and that over 90% of USD1 tokens remain in Binance wallets—potentially earning tens of millions in annual interest.
CZ’s comments followed his 2023 guilty plea to one felony count as part of a US legal settlement, serving four months in prison. He has since requested a presidential pardon, which could pave the way for his return to a senior role within a US crypto enterprise.
Trump’s expansive crypto portfolio—including WLF, an official memecoin, and campaign-linked crypto donations—has consistently drawn congressional scrutiny. House Republicans are now evaluating three crypto bills, including the bipartisan-supported GENIUS Act, which seeks to regulate payment stablecoins despite earlier Democratic concerns tied to Trump’s crypto associations.
Earlier this year, Zhao also refuted a Wall Street Journal report claiming he had agreed to testify against Tron founder Justin Sun as part of his plea deal with the DOJ.
