July 14, 2025 — Binance founder Changpeng “CZ” Zhao has amplified rumors that Coinbase may have been the anonymous source behind Bloomberg’s recent article targeting Trump’s USD1 stablecoin and Binance.
The claim adds new fuel to growing tensions between major crypto players amid rising political scrutiny.
Key Takeaways
- CZ reposted a tweet claiming Coinbase leaked info to Bloomberg to hurt Binance and Trump.
- Bloomberg’s article linked Binance to the Trump-affiliated USD1 stablecoin.
- CZ called the report a “hit piece” and threatened legal action.
Coinbase Accused of Leaking to Bloomberg
The rumor originated from crypto influencer Matt Wallace, who accused Coinbase of trying to sabotage Binance by feeding information to Bloomberg. Wallace suggested Coinbase feared Zhao’s possible pardon and Binance’s return to the US would threaten their dominant position.
Wallace also criticized the reported attack on Trump’s crypto project, World Liberty Financial, calling it “anti-American.” CZ retweeted the post without confirming or denying its contents.
CZ Denies Bloomberg Allegations
Bloomberg’s article claimed Binance helped develop USD1, a stablecoin used in a $2 billion deal tied to a UAE sovereign fund. It also reported that Zhao had applied for a presidential pardon shortly after the transaction.
In response, CZ dismissed the article as a competitor-funded “hit piece,” calling it riddled with “factual errors.” He hinted at taking legal action, stating, “Might have to sue them again for defamation.”
Zhao Seeks a Path Back to Crypto Leadership
After pleading guilty in 2023 and serving a four-month sentence, CZ is seeking a pardon from Donald Trump. A successful pardon could allow him to resume a leadership role in the US crypto space, something seen as a potential threat to Coinbase.
Since his release, Zhao has remained active in the global crypto scene. He has signed MOUs with regulators in Kyrgyzstan and Pakistan, offering guidance on digital asset policy and adoption.
Amplifier: Binance’s Influence Is Still Strong
Despite regulatory setbacks, Binance continues to dominate globally.
- Binance’s market share: Over 40% of global spot crypto trading.
- USD1 token holdings: 90% of tokens still reside in Binance wallets.
- Stablecoin revenue: Estimated tens of millions in interest annually from idle USD1 tokens.
These figures underline why a Binance return, under CZ’s leadership, could reignite fierce competition with Coinbase in the US market.
