CZ Reshares Allegations Targeting Coinbase
Binance founder and former CEO Changpeng “CZ” Zhao has amplified speculation surrounding a controversial Bloomberg report that linked Binance to a crypto project backed by former President Donald Trump. CZ reposted a tweet by crypto commentator Matt Wallace, which accused Coinbase of being the anonymous source behind Bloomberg’s claims.
Wallace asserted that Coinbase feared Binance’s potential reentry into the U.S. market—possibly aided by a presidential pardon for CZ—and sought to discredit both Binance and Trump’s crypto efforts. According to Wallace, “Coinbase would target President Trump in an attempt to hurt their competition… This is anti-American!”
CZ did not add any comment to the repost, leaving followers to speculate on whether he endorsed the claim. Cointelegraph reached out to both Binance and Coinbase, but neither company responded publicly by the time of publication.
Binance Reportedly Behind Trump’s USD1 Stablecoin
Bloomberg’s report alleged that Binance helped develop the smart contract infrastructure for USD1, a stablecoin issued by Trump-linked company World Liberty Financial. The token was reportedly involved in a $2 billion transaction involving a UAE-based fund, raising concerns about Binance’s continued influence despite its legal troubles in the U.S.
According to the report, over 90% of USD1 tokens remain in Binance wallets, potentially generating tens of millions of dollars annually in interest income. Critics say the undisclosed ties between Binance and USD1 highlight broader transparency issues in the crypto ecosystem.
In response, CZ blasted the article as a “hit piece” and suggested it was “sponsored by a competitor.” He even hinted at legal action, stating, “Might have to sue them again for defamation.”
CZ Pursues Presidential Pardon Amid Legal Fallout
CZ pleaded guilty in 2023 to violating U.S. anti-money laundering regulations and served a four-month prison sentence. Since then, he has expressed interest in returning to the crypto scene under more favorable regulatory conditions. In May 2025, he confirmed that he was seeking a presidential pardon from Donald Trump, which would potentially enable him to regain a management position at a U.S.-based crypto entity.
His pursuit of a pardon has generated significant political and industry debate. Some believe a pardon would signal renewed support for innovation, while others fear it could undermine regulatory credibility.
Post-Prison: CZ Expands Global Crypto Influence
Since his release, CZ has focused on building his reputation in international crypto regulation. In April 2025, he signed a memorandum of understanding (MOU) with Kyrgyzstan’s foreign investment agency to help design blockchain policies.
Just three days later, he was appointed as an advisor to Pakistan’s Crypto Council, where he will help oversee the country’s transition into a regulated digital asset market. These moves demonstrate CZ’s strategy of remaining a powerful behind-the-scenes figure in the crypto space, even while legally restricted in the U.S.
Speculation Over Coinbase’s Involvement Grows
Wallace’s claims against Coinbase have sparked widespread discussion online. The idea that a U.S.-based exchange may have leaked damaging information about a competitor and a former president’s crypto initiative is fueling a new wave of crypto tribalism.
While there’s no concrete evidence proving Coinbase’s involvement, Wallace’s assertions align with ongoing tensions between major centralized exchanges vying for regulatory clarity and market dominance. If Binance were to return to the U.S. under Trump-era regulatory support, it could potentially pose a significant threat to Coinbase’s market share.
Stablecoin Politics: USD1 at the Center
USD1, issued by World Liberty Financial, is increasingly becoming a political lightning rod. Tied to Trump’s broader strategy to position the U.S. as a crypto leader, the stablecoin’s association with Binance has stirred controversy.
Critics argue that a former president supporting a stablecoin developed by a convicted crypto executive sets a dangerous precedent. Supporters, however, believe USD1 symbolizes a new era of government-backed decentralization.
If the Bloomberg report is accurate, the project’s backers may face further scrutiny from regulators and lawmakers, especially amid ongoing debates about stablecoin legislation.
Regulatory Tensions Between Binance, Coinbase, and Washington
Coinbase has long portrayed itself as the most compliant crypto exchange in the U.S., often lobbying lawmakers for clear regulations. Binance, on the other hand, has faced multiple legal actions and was forced to pay $4.3 billion in fines as part of its 2023 settlement.
As the 2024 and 2025 political cycles continue to elevate crypto as a hot-button issue, major platforms like Coinbase and Binance are maneuvering aggressively for influence. This includes lobbying, marketing campaigns, and potentially using media channels to shape public perception.
What Comes Next for Trump, Binance, and the Crypto Space
The convergence of politics, media, and crypto is reaching a fever pitch. If CZ secures a pardon and Binance regains a foothold in the U.S., the competitive landscape may shift dramatically. Trump’s endorsement of USD1 and the prospect of crypto-focused regulation has already catalyzed massive interest among investors.
The question now is whether further leaks, political lobbying, or regulatory action will define the next phase of the crypto ETF and stablecoin boom. One thing is clear: the rivalry between Binance and Coinbase, and the role of U.S. politics in crypto, is far from over.
