CZ Stokes Controversy With Coinbase Allegations
Binance co-founder and former CEO Changpeng “CZ” Zhao stirred speculation this week after reposting a tweet alleging that Coinbase was the anonymous source behind Bloomberg’s report on Trump’s new crypto venture and Binance. The tweet came from crypto commentator Matt Wallace, who claimed Coinbase executives feared Binance’s potential return to the U.S. market and a pardon for CZ from former President Donald Trump.
Wallace suggested that Coinbase saw Binance’s comeback as a threat to its market dominance, prompting the alleged leak to Bloomberg. The post called the tactic “anti-American” and questioned whether Coinbase would take accountability. CZ, while not confirming the claims, amplified the message by reposting it to his followers.
Bloomberg’s Allegations About USD1 Stablecoin
The Bloomberg article in question alleged that Binance developed the smart contract behind USD1—a stablecoin issued by World Liberty Financial, reportedly tied to Donald Trump’s political allies. It claimed the coin was used in a $2 billion investment deal involving a UAE-based fund, with more than 90% of USD1 still held in Binance wallets. This would generate significant interest revenue.
The report also stated that Zhao applied for a presidential pardon soon after the USD1 deal, linking it to his possible return to U.S. crypto operations. Zhao has publicly criticized the Bloomberg article, calling it a “hit piece sponsored by a competitor” and threatening legal action for defamation.
Legal Trouble and Pardon Prospects for CZ
Zhao’s controversial legal status adds more fuel to the fire. He pleaded guilty to one felony count in 2023 as part of a major settlement with U.S. authorities. After serving four months in prison, Zhao is now seeking a presidential pardon that could open doors for his return to a leadership role within U.S.-based crypto businesses.
His pardon request, if approved, could radically shift the U.S. crypto market’s power dynamics—an outcome that Wallace alleges Coinbase is trying to prevent.
CZ’s Global Blockchain Ambitions Post-Prison
Despite legal issues in the U.S., CZ has been actively expanding his influence globally. On April 4, he signed an MOU with Kyrgyzstan’s foreign investment agency, agreeing to advise the country on blockchain regulations. Just days later, on April 7, he was appointed as an advisor to Pakistan’s newly established Crypto Council.
These moves demonstrate Zhao’s continued ambition to shape crypto policy and development, even while facing regulatory scrutiny in the U.S.
Crypto Industry Reacts to Growing Intrigue
The crypto community is watching the situation closely. The possibility of a Trump-linked stablecoin, the resurfacing of Binance in the U.S., and claims of internal sabotage between major exchanges highlight the increasingly political and competitive nature of the crypto space.
Cointelegraph has reached out to both Coinbase and Binance for comment, though neither had responded at the time of publication.
Rumors, Power Plays, and the Future of Crypto
Crypto becomes more entangled with political agendas, the lines between business competition and partisan influence continue to blur. Whether or not Coinbase is behind the Bloomberg report, the incident reveals how volatile and interconnected today’s crypto and political ecosystems have become.
Zhao’s legal comeback, Trump’s involvement in crypto initiatives, and the rivalry between Coinbase and Binance could collectively shape the next chapter of global crypto regulation and adoption.
