Shocking CZ Rumors Link Coinbase to Bloomberg’s Trump Stablecoin Report
Dive into the latest crypto drama as Binance founder CZ reposts a tweet sparking rumors about a major exchange potentially leaking information to a prominent news outlet. This story involves big names: CZ, Coinbase, Bloomberg, Donald Trump, and a stablecoin.
Did Coinbase Fuel the Bloomberg Report?
Binance co-founder Changpeng “CZ” Zhao recently amplified a tweet from crypto commentator Matt Wallace. The tweet alleged that Coinbase was the anonymous source behind a recent Bloomberg report. This report specifically targeted a crypto project linked to former President Donald Trump, World Liberty Financial, and also involved Binance.
Wallace’s claim, shared by CZ on X (formerly Twitter), suggests Coinbase executives might fear CZ and Binance returning to the US market. This potential return could significantly impact Coinbase’s market share, allegedly motivating them to undermine competitors. Wallace called this alleged action “anti-American” and questioned if Coinbase would address the accusation.
What Did the Bloomberg Report Claim?
The Bloomberg article at the center of this controversy made several claims:
- It linked Binance to USD1, a stablecoin issued by World Liberty Financial, stating Binance developed its smart contract.
- It suggested CZ applied for a presidential pardon shortly after USD1 was used in a large $2 billion deal involving a UAE fund investing in Binance.
- It noted that a significant majority (>90%) of USD1 tokens are held in Binance wallets, potentially generating substantial annual interest revenue.
CZ responded to the Bloomberg article, calling it a “hit piece” sponsored by a competitor. He stated it contained numerous factual errors and even suggested he might consider suing for defamation again.
The Trump Connection and Pardon Context
The Bloomberg report ties Binance and the USD1 stablecoin directly to former President Donald Trump’s orbit. This adds a political dimension to the crypto narrative. For CZ, the mention of a presidential pardon is particularly relevant.
CZ pleaded guilty to a felony count in a 2023 settlement with US authorities and recently completed a four-month prison sentence. He has publicly stated he is seeking a presidential pardon from Trump. A pardon could potentially remove restrictions preventing him from taking a leadership role in a US crypto business.
While seeking a pardon, CZ has remained active internationally. He has taken on advisory roles for blockchain and crypto regulation in both Kyrgyzstan and Pakistan, indicating his continued interest and involvement in the global crypto space.
Navigating Rumors and Reports in Crypto
The crypto industry is often subject to rapid news cycles and rumors. This situation highlights the challenges of distinguishing verified information from speculation, especially when involving major players and politically sensitive figures like Donald Trump and the future of stablecoin projects. Both Binance and Coinbase were contacted for comment regarding the allegations but did not provide a response by the time of the original publication.
Conclusion: Waiting for Clarity
CZ’s decision to share the tweet linking Coinbase to the Bloomberg report has certainly stirred discussion within the crypto community. While the allegations remain unconfirmed rumors amplified by CZ, they point to the intense competition and complex relationships within the industry, potentially involving media leaks and political maneuvering related to stablecoins and market position. The full truth behind the Bloomberg report’s source and the implications for Coinbase, Binance, Trump, and the USD1 project remains to be seen.
