The power struggle in the cryptocurrency industry is becoming more intense than ever, as new allegations target the connections between Binance, former President Donald Trump, and a controversial stablecoin project continue to erupt. At the center of this incident is Changpeng “CZ” Zhao – the co-founder and former CEO of Binance – and its biggest competitor in the U.S., Coinbase.

Allegations that Coinbase is behind the smear campaign against Binance and Trump

Last Sunday, CZ shared a post from cryptocurrency commentator Matt Wallace on platform X (formerly Twitter), in which Wallace accused Coinbase of being the anonymous source behind Bloomberg's investigation – an article that caused an uproar in the cryptocurrency community as it targeted both the stablecoin project World Liberty Financial, allegedly linked to Trump, and Binance.

Wallace asserts:

“Binance is the world's number 1 cryptocurrency exchange. If Binance returns to the U.S. market as fully legal, it could seriously harm Coinbase's interests.”

Going further, Wallace also criticized Coinbase as “anti-American” for deliberately dragging former President Donald Trump into the market share competition with Binance. He questioned whether Coinbase would dare to admit its involvement behind Bloomberg's article and warned that “everything will eventually be revealed.”

Although CZ did not directly confirm or deny the allegations, his sharing of this post caused the cryptocurrency community and the media to take notice.

Binance is accused of developing smart contracts for USD1 – Trump’s stablecoin

The original Bloomberg article claimed that Binance developed the smart contract for USD1, a stablecoin issued by World Liberty Financial – a project believed to have the backing of Trump. The report also revealed that:

  • More than 90% of the USD1 supply is held in Binance's wallets, which could generate tens of millions of USD in interest each year.

  • An investment fund from the UAE has used USD1 to execute a $2 billion deal with Binance.

  • CZ hassubmitted a presidential pardon application right after this deal, raising doubts about his political motives and intentions.

In response to the article, CZ called it “a smear campaign funded by rivals” and “filled with so many factual inaccuracies that I don't know where to begin my rebuttal.” He also warned that he might “continue to sue Bloomberg for defamation.”

CZ and the journey for presidential pardon

Changpeng Zhao is currently seeking a pardon from former President Donald Trump after he admitted to a criminal charge in 2023, resulting in a four-month prison sentence. Although he has served his time, receiving a pardon would give CZ the opportunity to return to managing business operations in the U.S., something many believe is causing concern for Coinbase.

After bars, CZ continues to have a global influence

Without waiting for the pardon results, CZ quickly re-emerged on the international stage:

  • On April 4, 2025, he signed a memorandum with the Kyrgyzstan Foreign Investment Agency, becoming an advisor in the blockchain field.

  • On April 7, he was appointed as an advisor to Pakistan's Cryptocurrency Council, a newly established organization to manage the digital asset market in the country.

This incident is not just a market share competition between two leading exchanges. It also highlights the intersection of technology, political power, and geopolitical interests that are becoming increasingly evident in the cryptocurrency world.

The allegation that Binance - with a stablecoin linked to Trump’s name - is manipulating the market, while Coinbase is accused of being behind a smear campaign against its rival, shows that the crypto market is no longer just a tech playground but has deeply entered the geopolitical arena.

Regardless of the truth behind it, it is clear that the battle between Binance and Coinbase is far from over, and market watchers will have to wait for more ‘hot’ developments in the near future.