Key Takeaways:
- Binance founder CZ calls Bloomberg report on Trump-affiliated stablecoin ‘defamatory’.
- Bloomberg claims Binance created USD1 smart contract and Zhao sought pardon after UAE deal.
- CZ hints at a second lawsuit, reviving tensions after Bloomberg’s prior Ponzi scheme retraction.
A fresh controversy has reignited tensions between Binance’s co-founder Changpeng “CZ” Zhao and financial media giant Bloomberg, following a report that links Zhao to a stablecoin project tied to former U.S. President Donald Trump. In a post on X (formerly Twitter), CZ slammed the article as a “hit piece,” accused it of factual errors, and warned he may sue again.
CZ Denies Involvement in Trump-Linked Stablecoin
The dispute centers around USD1, a stablecoin issued by World Liberty Financial (WLF), a crypto firm reportedly affiliated with Donald Trump’s growing web3 interests. Bloomberg’s latest report claims Binance was the original developer of the smart contract code for USD1, and that Zhao later sought a presidential pardon following a $2 billion investment deal involving a UAE-based fund and Binance, in which the token was allegedly used.
According to Bloomberg, over 90% of USD1 tokens remain in Binance wallets, potentially earning tens of millions in annual interest, an assertion CZ outright denied. In his response, he wrote:
“FUD. Bloomberg just wrote another hit piece (sponsored by a competitor) containing so many factual errors I don’t even know where to begin. Might have to sue them again for defamation.”
The allegation, if proven true, would tie Binance and Zhao to Trump’s increasingly publicized crypto ventures, which include a memecoin and campaign financing from Web3 stakeholders.
Read More: CZ Sounds Alarm After Ledger Discord Hack Exposes Users to Phishing Trap
A Legal Feud Rekindled
This isn’t the first time Zhao has taken legal aim at Bloomberg. In 2022, Bloomberg Businessweek’s Chinese-language edition published a now-retracted story alleging Binance was operating a Ponzi scheme. In 2024, the outlet issued a formal apology and retracted the piece, admitting the headline was “false and baseless.” The apology, however, was noticeably absent from the English edition, something Zhao publicly criticized at the time.
While the prior dispute ended with Bloomberg making a charitable donation instead of paying monetary damages, CZ’s latest comments suggest he’s preparing for round two, this time over what he claims is intentional defamation, possibly linked to competitive interests.
Why Bloomberg’s Report Hits a Political Nerve
The controversy has deeper implications because it connects the dots between crypto regulation, political influence, and financial media.
Bloomberg’s piece alleges that Zhao applied for a pardon shortly after a UAE fund used USD1 in a $2 billion deal with Binance, a narrative that, if true, may trigger investigations into whether digital assets are being used to navigate or influence regulatory oversight.
It also comes at a time when Trump’s pro-crypto stance is reshaping U.S. legislative direction, with Republican lawmakers pushing forward the GENIUS Act, a bill aimed at regulating stablecoins and payment tokens. This context makes Bloomberg’s reporting not just reputationally damaging, but politically sensitive.
World Liberty Financial and Trump’s Web3 Expansion
While CZ denies any association with World Liberty Financial, the firm has drawn scrutiny for its close ties to Trump, whose crypto interests have expanded rapidly in recent months.
In addition to USD1, Trump has been linked to:
- An official memecoin promoted by his campaign backers.
- Crypto-donor fundraising events.
- Multiple statements signaling strong support for Bitcoin mining and stablecoin innovation in the U.S.
WLF’s USD1 token is reported to be the centerpiece of this ecosystem, though no direct evidence has surfaced showing Trump himself profiting from its issuance.
Read More: Big SEI Token Investment by Trump-Backed World Liberty Financial
Zhao’s Wider Disputes with U.S. Media and Regulators
Beyond Bloomberg, CZ has sparred with other media outlets. In April 2025, he dismissed a Wall Street Journal report claiming he agreed to testify against Justin Sun, founder of TRON, as part of a plea deal with U.S. authorities. CZ responded bluntly:
“WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn’t. People who become gov witnesses don’t go to prison. They are protected. I heard someone paid WSJ employees to smear me.”
The former Binance CEO, who pleaded guilty to a felony in late 2023 as part of a $4.3 billion settlement with the U.S. Department of Justice, served a four-month prison sentence earlier this year. He has since returned to X with occasional posts and is reportedly seeking a presidential pardon, something that has only fueled the speculative link with Trump.
