Coinbase is facing criticism after allegations emerged linking the exchange to a coordinated media attack against Binance and Donald Trump. There is speculation that the U.S.-based cryptocurrency giant may have disclosed to reporters about Binance's role in World Liberty Financial's USD1 stablecoin project.
This incident comes amid reports that President Trump may pardon Binance founder Changpeng Zhao (CZ), who has been serving a sentence after pleading guilty in 2023. The possibility of CZ returning to cryptocurrency operations in the U.S. has raised concerns among Coinbase's leadership. Many industry experts believe that fears of Binance's comeback competition may be the real motivation behind this smear campaign.
In addition, there is increasing criticism of Coinbase's high transaction fees and a decline in user satisfaction. Many traders have long favored Binance due to its lower costs and smoother experience. Therefore, Binance's return to the U.S. will seriously threaten Coinbase's market dominance. Some cryptocurrency experts believe that this exchange is now relying on political influence rather than product improvements to maintain control.
CZ Defends Binance Against Allegations
Meanwhile, CZ has strongly denied the allegations reported by Bloomberg. The article accused Binance of developing the USD1 smart contract and benefiting from a $2 billion deal related to the UAE. The article also alleged that CZ directly sought a pardon from Trump, implying a quid pro quo arrangement involving World Liberty Financial. However, CZ dismissed this article, considering it an "attack piece" funded by competitors, containing "too many factual inaccuracies."
Furthermore, CZ hinted at suing Bloomberg, similar to what he has done in the past. He emphasized that Binance regularly supports new cryptocurrency projects and the involvement of the Trump family does not indicate wrongdoing. Additionally, he questioned the integrity of media organizations targeting projects related to political figures while ignoring deeper issues in the industry.
CZ Expands Global Cryptocurrency Influence
Since being released, CZ has remained actively involved in global cryptocurrency activities. In April, he signed a blockchain consulting agreement with Kyrgyzstan. Shortly after, he joined Pakistan's newly formed Cryptocurrency Council as a key advisor. These moves demonstrate CZ's ongoing influence despite legal troubles in the U.S.