"I am not a fixer for anyone," Changpeng "CZ" Zhao fired back on May 23, criticizing a Wall Street Journal report linking him to a cryptocurrency joint venture related to Trump. The Binance founder called these claims 'politically motivated' as the conflict over cryptocurrency influence escalates.
The WSJ reports that Changpeng Zhao acted as a behind-the-scenes negotiator for the cryptocurrency joint venture World Liberty Financial (WLF) related to Trump. However, Zhao stated that the story has distorted the truth. This is his second clash with the paper in just a few months.
Changpeng Zhao versus WSJ: A clash between storytelling or media bias?
According to The Wall Street Journal, Changpeng Zhao introduced Pakistani entrepreneur Bilal bin Saqib to WLFI co-founder Zach Witkoff, aiding in arranging meetings that led to a government deal.
Zhao denies this, stating, "I met Mr. Saqib for the first time on that trip," and argued that Saqib and the Witkoffs had known each other. He called the story 'flawed.'
The dispute revolves around conflicting claims about CZ's influence. The WSJ argues that his role was crucial for WLFI's $550 million token sale and the $2 billion deal in Abu Dhabi. Zhao also disputes this, stating that the report is erroneous.
His team submitted a correction, but the Journal did not include them, and Zhao called it a 'biased report.'
The report also raised ethical concerns, noting that WLFI leaders blend government and private enterprise. Steve Witkoff serves as Trump's emissary while his son Zach runs WLFI, which has raised $550 million this year.
This is the second clash between CZ and the Journal in months after an April report citing anonymous sources claimed Zhao had agreed to testify against Tron’s Justin Sun in plea negotiations. He called it 'baseless,' noting that protected witnesses would avoid prison.
Critics see a pattern as Zhao now views both episodes as media bias against cryptocurrency, even as regulators ramp up scrutiny of projects like WLF. However, neutral observers still have many questions.
If Changpeng Zhao was not involved, why did WLF's deal with Pakistan occur after these meetings? And why does the Journal still stand by its source? The risks far exceed the headlines.
Trump's cryptocurrency empire: Where politics and digital assets collide.
This controversy reflects broader tensions in Washington. Just three days before CZ's rebuttal, SEC Chairman Paul Atkins faced tough questions from Congress about suspending investigations into both Justin Sun and a meme coin related to Trump. Critics also see a pattern of special treatment, while supporters call for political targeting.
Atkins asserts that the case involving Tron continues while also introducing new regulations on stablecoins, even as WLFI prepares to launch the USD1 stablecoin backed by the Treasury.
However, this connection is much deeper than mere regulatory filings.
For instance, the Trump family holds a 60% stake in WLFI, transferring 75% of the revenue from token sales into their treasury while allocating only 5% for platform development.
This financial imbalance has surprised some at a recent WLFI dinner at the Virginia golf club, where Justin Sun received a gold watch from POTUS after accumulating a large stake worth $TRUMP.
The fundraising effort has brought in $148 million from exclusive dinners, where a public investor admitted that people buy WLFI tokens mainly due to the connection to 'cryptocurrency chairman.'
Oversight groups call this the clearest combination of political power and cryptocurrency, where leaders benefit from digital assets while regulators push some cases forward while slowing down others.
From $550 million in sales to a $3.9 billion loss: The volatility of Trump-related tokens.
New data shows that $TRUMP whales, including VIPs at last Friday's Washington dinner, are now deeply in the red. According to Bloomberg, 19 major wallets have seen their $TRUMP holdings drop by 52% in just a month.
The largest wallet has lost $48 million after the price fell from $61 to $12 across 800,000 tokens.
The damage is not limited to a few investors. 590,000 wallets have lost a total of $3.9 billion, while Chainalysis reports $320 million in transaction fees have flowed to entities connected to Trump.
Dan Nathan from CNBC called this 'a perfect Ponzi scheme,' arguing that the endless flow of money inflates prices while filling the pockets of the Trump Organization.
Currently, lawmakers are getting involved. Senators Elizabeth Warren and Adam Schiff want to launch an investigation into ethics and new MEME laws that could prevent state officials from benefiting from tokens.
Meanwhile, World Liberty Financial and supporters of the USD1 stablecoin backed by the Treasury have criticized the Senate's investigation into their transactions.
In a letter from the major U.S. law firm BakerHostetler, WLF asserts that USD1 holds all short-term Treasury reserves and promotes this coin as a means to channel global demand into U.S. bonds, maintaining cryptocurrency dominance on U.S. soil.