Binance’s CZ threatens to sue Bloomberg over Trump stablecoin report

Binance co-founder and former CEO Changpeng “CZ” Zhao has rejected a recent Bloomberg report linking him to a stablecoin issued by World Liberty Financial (WLF), one of the crypto businesses tied to US President Donald Trump.

In a post on X responding to the investigation, Zhao called the article a “hit piece (sponsored by a competitor)” filled with “so many factual errors” that he “doesn’t even know where to begin.” He added, “Might have to sue them again for defamation.”

The Bloomberg report claimed Binance developed the original smart contract code for USD1, a stablecoin issued by World Liberty Financial, a company affiliated with former President Donald Trump.

It also alleged that Zhao applied for a presidential pardon shortly after USD1 was used in a $2 billion deal involving a UAE-based fund’s investment in Binance. More than 90% of USD1’s tokens reportedly remain in Binance wallets, potentially generating tens of millions in annual interest revenue.

Bloomberg’s false Binance Ponzi claims

Zhao’s tweet referenced a previous legal dispute with Bloomberg, linking to a July 2024 apology from the publication’s Chinese-language edition.

The statement retracted a 2022 article accusing Binance of operating a Ponzi scheme, calling the headline “false and baseless.” At the time, Bloomberg agreed to make a charitable donation instead of paying damages.

Zhao pleaded guilty to one felony count as part of a settlement with US authorities in 2023. Although he had already served four months in prison, he said in May that he was seeking a presidential pardon from Trump. Such a pardon could potentially allow Zhao to return to a managerial or operational role at a US crypto business. 

Trump’s crypto ventures, including World Liberty Financial, his official memecoin, and crypto executive campaign contributions, have attracted scrutiny from US lawmakers since before he took office.

Republican leaders in the House are set to consider three crypto bills, including the GENIUS Act, which regulates payment stablecoins. The bill passed the Senate with bipartisan support despite initial Democratic opposition due to Trump’s crypto interests.

Zhao’s beef with WSJ

In April, Zhao also dismissed a Wall Street Journal report that claimed he had agreed to provide evidence against Tron founder Justin Sun as part of a plea deal with the United States Department of Justice.

“WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn’t,” Zhao wrote in an April 12 X post. “People who become gov witnesses don’t go to prison. They are protected. I heard someone paid WSJ employees to smear me.”