Binance co-founder and former CEO CZ denied a recent Bloomberg report linking him to the stablecoin issued by World Liberty Financial (WLF), one of the crypto enterprises associated with former US President Donald Trump.
In a response post on X, CZ called the article an "attack piece (sponsored by competitors)" filled with "so many factual errors" that he "doesn't even know where to start". He added: "Might have to sue them for defamation again."
Bloomberg's report claimed that Binance developed the original smart contract code for USD1, a stablecoin issued by a company under former President Donald Trump.
The allegations also stated that shortly after USD1 was used in a transaction involving a UAE fund's $2 billion investment in Binance, CZ applied for a presidential pardon. Over 90% of USD1 tokens reportedly remain in Binance wallets, potentially generating millions in annual interest.
CZ called Bloomberg's report "FUD". Source: CZAdvertisement
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Bloomberg's False Allegations of Binance Ponzi Scheme
CZ's tweet referenced previous legal disputes with Bloomberg and mentioned a retraction in the Chinese version of the publication in July 2024.
The statement withdrew a 2022 article accusing Binance of running a Ponzi scheme, stating the headline was "false and unfounded". At the time, Bloomberg agreed to make a charitable donation instead of paying damages.
CZ pleaded guilty to a felony charge and reached a settlement with US authorities in 2023. Despite serving four months in prison, he stated in May that he is seeking a presidential pardon from Trump. Such a pardon could potentially allow CZ to return to a management or operational role in a US crypto company.
Trump's crypto investments, including World Liberty Financial, his official meme coin, and crypto executive campaign donations, were already under scrutiny by US legislators before his term.
House Republican leaders will review three crypto bills, including the GENIUS Act for regulating payment stablecoins. Although Democrats initially opposed the bill due to Trump's crypto interests, it ultimately passed with bipartisan support in the Senate.
Related: Report: Binance's Relationship with Kenya Crypto Committee Raises Monopoly Concerns
CZ's Displeasure with The Wall Street Journal
In April, CZ also refuted a Wall Street Journal report claiming he had agreed to provide evidence against TRON founder Justin Sun as part of his plea deal with the US Department of Justice.
"The Wall Street Journal is trying so hard. They seem to have forgotten who went to jail and who didn't," CZ wrote in an X post on April 12. "People who become government witnesses don't go to jail. They are protected. I heard someone is paying Wall Street Journal employees to smear me."
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