Explosive Conflict: CZ Threatens Bloomberg With Defamation Lawsuit Over Trump Stablecoin Report
Get ready for another round in the ongoing saga between crypto giant Binance and major financial media. Binance co-founder and former CEO Changpeng “CZ” Zhao is pushing back hard against a recent Bloomberg report, threatening legal action over claims he says are false and damaging. This isn’t the first time CZ has clashed with Bloomberg, adding another layer to the tension.
What Did the Bloomberg Report Claim About Binance and the Trump Stablecoin?
The Bloomberg article that sparked CZ’s ire focused on USD1, a stablecoin issued by World Liberty Financial (WLF). WLF is one of the crypto businesses linked to former US President Donald Trump. According to the report, the key allegations were:
- Binance allegedly developed the original smart contract code for the USD1 stablecoin.
- CZ reportedly applied for a presidential pardon shortly after USD1 was used in a significant $2 billion deal involving a UAE fund’s investment in Binance.
- Over 90% of USD1 tokens are said to remain in Binance wallets, potentially generating substantial annual interest revenue.
These claims suggest a close, potentially strategic, link between Binance, CZ, and Trump’s crypto ventures, specifically concerning the Trump stablecoin.
CZ’s Response and Threat of Defamation Lawsuit
CZ didn’t mince words in his public response. Taking to X (formerly Twitter), he dismissed the Bloomberg report as a “hit piece,” suggesting it might even be sponsored by a competitor. He stated the article contained “so many factual errors” that he couldn’t even list them all. His strong reaction culminated in a direct threat: “Might have to sue them again for defamation.” This signals CZ’s intent to pursue a Defamation lawsuit if he believes the report has unjustly harmed his reputation or that of Binance.
Not the First Time: CZ vs. Bloomberg and Other Media
This isn’t the first time CZ has been in a legal spat with Bloomberg. He referenced a previous dispute where Bloomberg’s Chinese-language edition issued an apology in July 2024. That apology retracted a 2022 article headline that falsely and baselessly accused Binance of operating a Ponzi scheme. At that time, Bloomberg agreed to a charitable donation instead of paying damages. Beyond Bloomberg, CZ has also publicly challenged reports from other publications, such as the Wall Street Journal. In April, he dismissed a WSJ report claiming he had agreed to provide evidence against Tron founder Justin Sun as part of his plea deal with US authorities, stating that government witnesses typically don’t go to prison.
Context: CZ, Pardons, and Trump’s Growing Crypto Ties
The Bloomberg report’s claim about CZ seeking a presidential pardon adds another layer to the story. CZ pleaded guilty to one felony count in 2023 as part of a settlement with US authorities. He served four months in prison and was released in May. He has publicly mentioned seeking a pardon from Trump, which could potentially open doors for him to return to a leadership role in the US crypto sector. Meanwhile, Donald Trump has increasingly embraced the crypto space, with ventures like World Liberty Financial, an official memecoin, and active engagement with crypto executives for campaign contributions. This growing political connection makes any alleged links between Trump’s crypto projects and major players like Binance particularly noteworthy and subject to scrutiny.
Summary: A High-Stakes Media Clash
In essence, CZ is vehemently denying the Bloomberg report’s claims that tie him and Binance closely to the Trump stablecoin project USD1. He views the article as inaccurate and potentially damaging, leading him to threaten a Defamation lawsuit, building on past legal confrontations with the publication. This situation highlights the ongoing tension between major crypto figures and financial media outlets, especially as the crypto world intersects more frequently with politics and regulatory matters.
