Binance founder and former CEO Changpeng "CZ" Zhao strongly reacted to a Bloomberg article accusing him of being involved in a Trump-backed stablecoin project. Zhao described the article as "FUD" (spreading fear, uncertainty, and doubt) and stated that he may sue for defamation.
"I may have to file another defamation lawsuit," CZ said on the social media platform X. "Another smear campaign, supported by competitors, with so much misinformation that I don't even know where to start."
A report from Bloomberg published yesterday accused Binance of writing smart contract code for the USD1 stablecoin, issued by World Liberty Financial, a company affiliated with the Trump family. The article also alleged that Zhao applied for a presidential pardon after this cryptocurrency was used in a $2 billion investment deal in the UAE.
According to the information in the report, over 90% of the USD1 supply is currently held in Binance wallets, and it is believed that this could generate tens of millions of dollars in interest for the exchange annually.
Zhao, recalling a previous legal battle with Bloomberg, issued an apology published in July 2024. The Chinese edition of Bloomberg acknowledged that the 2022 report accusing Binance of operating a Ponzi scheme was "false and unfounded" and decided to donate to charity instead of compensating.