{"id":13971,"date":"2025-07-12T18:47:27","date_gmt":"2025-07-12T16:47:27","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=13971"},"modified":"2025-07-12T18:47:27","modified_gmt":"2025-07-12T16:47:27","slug":"cz-of-binance-refutes-bloombergs-claims-on-trump-supported-usd1-stablecoin","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/07\/12\/cz-of-binance-refutes-bloombergs-claims-on-trump-supported-usd1-stablecoin\/","title":{"rendered":"CZ of Binance Refutes Bloomberg’s Claims on Trump-Supported USD1 Stablecoin"},"content":{"rendered":"

<\/p>\n

\n

Binance co-founder and former CEO Changpeng \u201cCZ\u201d 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.<\/p>\n

In a update<\/a> on X addressing the investigation, Zhao labeled the report a \u201chit piece (backed by a rival)\u201d packed with \u201ccountless factual inaccuracies\u201d that he \u201cdoesn\u2019t even know where to start.\u201d He remarked, \u201cMight need to take legal action against them for defamation.\u201d<\/p>\n

The Bloomberg article asserted that Binance was responsible for developing the original smart contract code<\/a> for USD1, a stablecoin from World Liberty Financial, a firm linked to former President Donald Trump.<\/p>\n

It also suggested that Zhao sought a presidential pardon shortly after USD1 was utilized in a $2 billion transaction<\/a> with a UAE-based fund investing in Binance. Reports indicate that over 90% of USD1\u2019s tokens remain in Binance wallets, potentially accruing tens of millions in yearly interest income.<\/p>\n

CZ describing Bloomberg report as \u201cFUD.\u201d Source: <\/em>CZ<\/em><\/a><\/figcaption><\/figure>\n

Related: <\/strong><\/em>\u2018Is this real?\u2019 CZ questions TON\u2019s UAE Golden Visa as government sources remain silent<\/strong><\/em><\/a><\/p>\n

Bloomberg\u2019s inaccurate Binance Ponzi allegations<\/h2>\n

Zhao\u2019s tweet alluded to a prior legal conflict with Bloomberg, referencing a July 2024 retraction from the publication\u2019s Chinese-language edition.<\/p>\n

The notice withdrew a 2022 article accusing Binance of running a Ponzi scheme, describing the headline as \u201cfalse and unfounded.\u201d At that time, Bloomberg concurred to make a charitable contribution instead of compensatory damages.<\/p>\n

Zhao pleaded guilty to a felony charge<\/a> within a settlement with US authorities in 2023. Although he had already spent four months incarcerated, he mentioned in May that he was\u00a0pursuing a presidential pardon<\/a> from Trump. This pardon could potentially enable Zhao to resume a leadership or operational position in a US crypto firm.<\/p>\n

Trump\u2019s 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.<\/p>\n

Republican leaders in the House are preparing to review three crypto legislative proposals<\/a>, among them the GENIUS Act, which governs payment stablecoins. The bill passed the Senate with bipartisan agreement amidst initial Democratic resistance<\/a> due to Trump\u2019s involvement in the crypto space.<\/p>\n

Related: <\/strong><\/em>Binance associations with Kenyan crypto board heighten monopoly worries: Report<\/strong><\/em><\/a><\/p>\n

Zhao\u2019s issue with WSJ<\/h2>\n

In April, Zhao also\u00a0rebuffed a Wall Street Journal claim<\/a> that he had consented to testify against Tron founder Justin Sun as part of a plea agreement with the United States Department of Justice.<\/p>\n