Co-founder and former CEO of Binance, Changpeng Zhao (CZ), has strongly refuted recent reports from Bloomberg, which claimed he had connections to a stablecoin called USD1, issued by World Liberty Financial (WLF) — a company linked to former U.S. President Donald Trump. Zhao called this article 'an unfounded attack' and stated that the article's content was filled with such serious errors that he did not know where to begin his response.
In a post on platform X, Zhao asserted that Bloomberg's article was 'FUD' and warned that he might sue the publication for defamation. The former CEO of Binance dismissed claims that he and his company were involved in developing smart contract code for USD1, while also denying any allegations regarding connections with the investments of UAE funds in Binance.
Bloomberg's report: Controversial allegations
Bloomberg's article claimed that Binance was involved in developing smart contract code for USD1, a stablecoin issued by WLF. The article further alleged that Zhao sought a pardon from President Donald Trump immediately after USD1 was used in a $2 billion deal related to an investment from a UAE-based fund into Binance. Another notable part of the report stated that over 90% of USD1 tokens are still being held in Binance's wallets, which could yield tens of millions of dollars in annual interest income.
Zhao has dismissed all these allegations, claiming that they are merely part of a 'FUD' campaign aimed at discrediting him and Binance. He asserted that the information provided is false and baseless.
In his post, Zhao not only denied the allegations in the new report but also referenced a previous legal dispute with Bloomberg. In July 2024, Bloomberg's Chinese edition had to issue a public apology, retracting an article from 2022 that accused Binance of operating a Ponzi scheme. The publication agreed to donate money to charity instead of compensating for damages due to misinformation in the article.
This is not the first time Zhao has spoken out against misinformation from major media outlets. Previously, he also rebutted a report from the Wall Street Journal in April 2024, which alleged that he had agreed to provide evidence against Justin Sun, the founder of Tron, as part of a plea deal with the U.S. Department of Justice.
'The Wall Street Journal is clearly trying too hard. It seems they have forgotten who is supposed to be punished and who is not,' Zhao shared in a post on X on April 12. 'Individuals who become witnesses for the government do not go to prison. They are protected. I have heard that someone has paid WSJ staff in an attempt to tarnish my reputation.'
Contact with President Trump and cryptocurrency projects
Donald Trump's cryptocurrency projects, including World Liberty Financial, are attracting significant attention from U.S. lawmakers, especially as Republican leaders prepare to consider new legislation related to cryptocurrencies, including the GENIUS Act. This bill, which has passed the Senate with bipartisan support, aims to regulate stablecoin payment activities, although it has faced opposition from the Democratic Party due to Trump's cryptocurrency interests.
In addition, Zhao revealed that in May 2024, after serving four months in prison as part of a settlement agreement with the U.S. government, he officially requested a pardon from President Trump. This pardon would allow Zhao to return to a management or executive role at a cryptocurrency company in the U.S., opening up opportunities to continue developing his career in this rapidly growing industry.
The future of Zhao and Binance
Despite the controversies and pressure from media reports, Zhao remains steadfast in his position and unwavering. With strategic vision, he has built Binance into one of the leading and globally influential cryptocurrency exchanges. His career continues to thrive, and clarifying false allegations and protecting his personal reputation are goals he is determined to achieve in the future. At the same time, he continues to promote the sustainable development of the cryptocurrency industry, despite the challenges faced.
With complex legal developments and shifts in U.S. politics, Zhao remains a significant figure in the crypto space. His connections with President Trump and his cryptocurrency projects will undoubtedly continue to attract the attention of both investors and regulatory agencies.
Facing many conflicting reports and controversies, Zhao remains committed to protecting his reputation and career, continuing to fight to maintain his position in a constantly changing and challenging cryptocurrency industry.