CZ Fuels Speculation Around Coinbase’s Role in USD1 Allegations
In a striking development in the crypto industry, Binance co-founder Changpeng “CZ” Zhao has amplified allegations that Coinbase may be the anonymous source behind Bloomberg’s recent report on Trump’s stablecoin initiative, USD1, and its ties to Binance. The allegations surfaced via a post from crypto commentator Matt Wallace, which CZ reposted on social media without confirming or denying its content.
Wallace claimed that Coinbase executives feared a full comeback of Binance in the U.S. could harm their market dominance — prompting an alleged attempt to discredit both Binance and Trump’s crypto project.
Bloomberg Report Draws Industry Backlash
The Bloomberg report in question alleged that Binance had created the smart contract for the stablecoin USD1, which is being promoted by a group known as World Liberty Financial, reportedly with ties to former U.S. President Donald Trump.
The article further stated:
- Over 90% of USD1 supply remains in Binance-controlled wallets, potentially earning millions in interest.
- CZ had sought a presidential pardon from Trump shortly after USD1 was used in a $2 billion UAE-linked investment deal.
In response, Zhao labeled the report a “hit piece” and claimed it was “sponsored by a competitor”, hinting at Coinbase without directly naming them.
Zhao’s Legal Past and Potential Political Comeback
Zhao pleaded guilty to a federal charge in 2023 as part of a historic U.S. settlement. After serving four months in prison, he has since expressed intentions to seek a presidential pardon, which could allow him to return to a U.S.-based executive role.
Zhao’s comments underscore the high-stakes power play unfolding between major crypto exchanges as they jostle for influence in both regulatory and political landscapes.
Why This Matters to the Crypto Industry
This controversy is more than just personal rivalry:
- It reflects the growing intersection between crypto and U.S. politics, especially in an election year.
- It raises questions about industry ethics and how leading platforms may use anonymous media influence to compete.
- The outcome could shape how centralized exchanges operate in a politically sensitive regulatory climate.
As the 2024 U.S. election approaches, the crypto world watches closely. Whether Coinbase responds, or whether further evidence emerges, one thing is clear: the battle for crypto dominance is no longer just financial — it’s political.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.