(Bloomberg) revealed that Binance is involved in the development of $USD1, CZ angrily denounces competitor-sponsored defamation.
Binance founder Zhao Changpeng (CZ) strongly rebutted (Bloomberg) latest report on Friday, which accused Binance of being deeply involved in the development of the $USD1 stablecoin issued by the Trump family's related company, World Liberty Financial. CZ criticized the report as 'another hit piece' and claimed it was 'sponsored by competitors.'
Image Source: X Binance founder Zhao Changpeng (CZ) strongly rebutted (Bloomberg) latest reports on Friday on the X platform.
(Bloomberg) cited three anonymous sources claiming that Binance developed the basic smart contract code for the $USD1 stablecoin. The report pointed out that $USD1 quickly reached a market value of $2 billion on the day it launched, May 22, and over 90% of the $USD1 tokens are still held in Binance wallets, potentially bringing the Trump family tens of millions of dollars in annual interest income.
CZ stated that the report contains 'too many factual errors, I don't even know where to start rebutting,' and threatened that 'they may have to be sued for defamation again.'
The relationship between Trump's cryptocurrency empire and Binance becomes the focus.
The relationship between Trump and Binance has recently attracted attention. In addition to Binance listing $USD1, $32.8 million has flowed into the exchange from Trump's meme coin. (Bloomberg) reports claim that shortly after the completion of a $2 billion investment related to $USD1, CZ applied for a pardon from President Trump.
CZ was previously convicted for failing to establish adequate safeguards against money laundering activities at Binance and was released after serving four months last year. Reports indicate that CZ is looking forward to obtaining a pardon, and the close relationship between Binance and World Liberty Financial raises concerns about conflicts of interest.
Regarding these allegations, the Trump White House declined to comment, while a Binance spokesperson stated that CZ is currently not an employee of the company, and World Liberty Financial claimed that the media is attempting to 'push a political agenda.'
Media hostilities reignite, CZ threatens to sue again.
This is not the first legal dispute between CZ and (Bloomberg). In 2022, CZ sued (Bloomberg) Hong Kong publisher Modern Media for publishing an article accusing CZ of running a Ponzi scheme. After two years of legal battles, Modern Media issued an apology statement last July, retracted the related report, admitted that the headline was 'false and baseless,' and agreed to make a donation instead of compensation.
CZ has previously had similar disputes with other media. In 2020, he sued (Forbes) magazine, accusing it of reporting that Binance assisted in money laundering and deceived financial regulators, but withdrew the lawsuit in 2021. This April, CZ also rebutted (The Wall Street Journal) report, which claimed that he agreed to testify against Tron founder Justin Sun.
The cryptocurrency community overwhelmingly supports CZ, with most users encouraging him to sue (Bloomberg) for defamation. As the report mainly relies on anonymous sources and lacks concrete evidence, this controversy is likely to continue to simmer in the short term.
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'CZ clashes with Bloomberg again! Furious rebuttal to rumors about Binance and USD1: Get ready to be sued' This article was first published in 'Crypto City.'
