Binance’s CZ Denies Involvement in Trump Stablecoin, Threatens Legal Action Against Bloomberg
Changpeng ‘CZ’ Zhao, co-founder of Binance, has rejected a Bloomberg report connecting him to USD1, a Trump-affiliated stablecoin issued by World Liberty Financial. CZ called the article a ‘hit piece’ containing factual errors and threatened defamation lawsuits. Bloomberg alleged Binance developed USD1’s smart contract and that CZ sought a presidential pardon from Donald Trump after a $2 billion deal involving the stablecoin.
Key Facts About the Controversy
- Bloomberg report claims Binance created USD1’s underlying technology
- Over 90% of USD1 tokens reportedly held in Binance wallets
- CZ references previous Bloomberg retraction regarding false Binance allegations
Legal and Political Ramifications
The dispute highlights growing tensions between crypto businesses and media organizations. It raises important questions about journalistic standards in cryptocurrency reporting and the legal protections available against misinformation. The case also demonstrates increased scrutiny of political connections in the digital asset space.
Industry Perspective
‘This situation shows why accuracy matters in crypto journalism,’ noted a blockchain legal analyst. ‘False claims can damage reputations and move markets.’
What Comes Next
The outcome could influence how media covers cryptocurrency projects and how blockchain companies respond to critical reporting. All parties await potential legal developments.
