Coinbase faces backlash after reports claim it fueled media attacks linking Binance and Trump’s USD1 crypto project for competitive gain.
CZ slams Bloomberg's report as false and hints at legal action, denying any shady deal with Trump over a presidential pardon.
Despite U.S. legal issues, CZ is expanding global crypto ties by advising Kyrgyzstan and Pakistan on blockchain regulation.
Coinbase is under fire after allegations emerged linking the exchange to a coordinated media attack targeting Binance and Donald Trump. Speculation suggests that the U.S.-based crypto giant may have tipped off reporters about Binance’s role in World Liberty Financial’s USD1 stablecoin project.
This comes amid reports that Trump could grant a presidential pardon to Binance founder Changpeng Zhao (CZ), who served time following a plea deal in 2023. The possibility of CZ returning to U.S. crypto operations has rattled Coinbase’s leadership. Industry voices argue that fear of renewed Binance competition could be the true motive behind the smear campaign.
Besides that, criticism has mounted over Coinbase’s high trading fees and declining user satisfaction. Many traders have long preferred Binance for its lower costs and smoother experience. Consequently, a Binance return to the U.S. would severely threaten Coinbase’s market dominance. Some crypto insiders believe the exchange is now resorting to political influence rather than product innovation to maintain control.
CZ Defends Binance Against Allegations
Meanwhile, CZ has strongly denied claims reported by Bloomberg. The article alleged Binance developed USD1’s smart contract and profited from a $2 billion UAE-linked deal. It also claimed CZ had directly sought a pardon from Trump, suggesting a quid-pro-quo arrangement involving World Liberty Financial. However, CZ dismissed the story as a competitor-sponsored "hit piece" filled with “so many factual errors.”
Moreover, CZ hinted at legal action against Bloomberg, just as he has done in the past. He emphasized that Binance regularly supports new crypto ventures and that the Trump family’s involvement does not suggest wrongdoing. Additionally, he questioned the integrity of media organizations targeting projects tied to political figures while ignoring deeper industry issues.
CZ Expands Global Crypto Influence
Since his release, CZ has remained active in global crypto affairs. In April, he signed a blockchain advisory deal with Kyrgyzstan. Shortly after, he joined Pakistan’s new Crypto Council as a key adviser. These moves show CZ’s continued influence despite legal troubles in the U.S.
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