Binance co-founder and former CEO Changpeng “CZ” Zhao has dismissed a recent Bloomberg article connecting him to a stablecoin launched by World Liberty Financial (WLF), a crypto enterprise associated with US President Donald Trump.
In a update on X addressing the investigation, Zhao labeled the report a “hit piece (backed by a rival)” packed with “countless factual inaccuracies” that he “doesn’t even know where to start.” He remarked, “Might need to take legal action against them for defamation.”
The Bloomberg article asserted that Binance was responsible for developing the original smart contract code for USD1, a stablecoin from World Liberty Financial, a firm linked to former President Donald Trump.
It also suggested that Zhao sought a presidential pardon shortly after USD1 was utilized in a $2 billion transaction with a UAE-based fund investing in Binance. Reports indicate that over 90% of USD1’s tokens remain in Binance wallets, potentially accruing tens of millions in yearly interest income.
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Bloomberg’s inaccurate Binance Ponzi allegations
Zhao’s tweet alluded to a prior legal conflict with Bloomberg, referencing a July 2024 retraction from the publication’s Chinese-language edition.
The notice withdrew a 2022 article accusing Binance of running a Ponzi scheme, describing the headline as “false and unfounded.” At that time, Bloomberg concurred to make a charitable contribution instead of compensatory damages.
Zhao pleaded guilty to a felony charge within a settlement with US authorities in 2023. Although he had already spent four months incarcerated, he mentioned in May that he was pursuing a presidential pardon from Trump. This pardon could potentially enable Zhao to resume a leadership or operational position in a US crypto firm.
Trump’s crypto pursuits, which include World Liberty Financial, his official memecoin, and contributions from crypto executives to his campaigns, have drawn attention from US lawmakers even before he assumed office.
Republican leaders in the House are preparing to review three crypto legislative proposals, among them the GENIUS Act, which governs payment stablecoins. The bill passed the Senate with bipartisan agreement amidst initial Democratic resistance due to Trump’s involvement in the crypto space.
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Zhao’s issue with WSJ
In April, Zhao also rebuffed a Wall Street Journal claim that he had consented to testify against Tron founder Justin Sun as part of a plea agreement with the United States Department of Justice.
“WSJ is really TRYING here. They appear to have overlooked who has been incarcerated and who hasn’t,” Zhao noted in an April 12 X update. “Individuals who become government witnesses do not go to jail. They are protected. I have heard that someone paid WSJ employees to defame me.”
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