The battle between Changpeng 'CZ' Zhao and mainstream media has erupted again as the co-founder and former CEO of Binance announced legal action against Bloomberg. The cause stems from a recent article accusing Zhao and Binance of being behind a stablecoin allegedly linked to former U.S. President Donald Trump.

CZ: 'This Article Is A Blow Funded By Competitors'

In a post on platform X (formerly Twitter), CZ publicly rejected all the information in Bloomberg's article, calling it a 'hit piece' – a deliberately defamatory article. He asserted that the content of the article is 'so false that it’s hard to know where to begin to refute it' and is considering the possibility of suing Bloomberg for defamation.

The article from Bloomberg alleges that Binance developed the initial smart contract for USD1 – a stablecoin issued by World Liberty Financial (WLF), a company allegedly closely linked to Donald Trump's campaign and financial interests. Additionally, over 90% of USD1 tokens are still stored in Binance's wallets, which could help the exchange rake in tens of millions in profits each year.

Worse, the article also alleged that CZ requested a presidential pardon right after an investment fund based in the UAE signed a $2 billion deal related to Binance – a detail that raised public questions about transparency and political motives.

CZ: 'History Has Proven Bloomberg Wrong'

CZ not only rejected all accusations but also reiterated his past legal victory against Bloomberg. In July 2024, the Chinese version of Bloomberg had to publicly apologize to CZ and Binance for publishing a false article in 2022 that accused the exchange of operating as a Ponzi scheme. With this precedent, CZ believes he has a solid basis to sue Bloomberg again.

Trump and the Crypto World: The Headache of American Lawmakers

The incident occurs as Donald Trump increasingly immerses himself in the cryptocurrency world. He supports World Liberty Financial, participates in memecoins, and campaigns by accepting donations through crypto. These activities have raised concerns both within and outside the Republican Party, as cryptocurrency increasingly infiltrates major political strategies.

The U.S. Congress is currently considering three important bills related to cryptocurrency, including the GENIUS Act – a law aimed at regulating stablecoin operations. Although initially opposed by Democrats due to concerns that Trump would benefit, the bill still passed in the Senate with bipartisan support, indicating the growing influence of crypto within the U.S. political system.

CZ Also Criticized The Wall Street Journal

This is not the first time CZ has struck back at major newspapers. In April this year, he posted criticism of the Wall Street Journal (WSJ) for publishing information that he had agreed to testify against TRON founder Justin Sun as part of a plea deal with U.S. authorities.

CZ mocked the article, saying that 'government witnesses don’t go to jail,' implying that if he had actually cooperated, he wouldn't have had to serve 4 months in prison in 2023. He even hinted that some WSJ reporters were paid to tarnish his reputation.

Crypto Twitter Stands By CZ

Immediately after CZ posted his response, the crypto community on Twitter rallied in support of him, arguing that mainstream media was deliberately 'ganging up' on industry leaders. Notable influencer Wendy O questioned: 'Why is Bloomberg so obsessed with CZ?'

This incident once again highlights the serious lack of trust between the cryptocurrency community and traditional media – where crypto investors often feel misunderstood, defamed, or discriminated against.

While Binance is still struggling with global legal issues, CZ – despite having stepped down as CEO – remains a central figure, both a symbol and a target. Allegations related to Trump only intensify the frontline where crypto, politics, and law intersect.

Whether or not he files a lawsuit, CZ's strong response shows that he does not accept being turned into a scapegoat in the battle between cryptocurrency and the media. This battle – perhaps – has only just begun.