Binance founder and former CEO Changpeng “CZ” Zhao reacted strongly to a Bloomberg report alleging his involvement in a Trump-backed stablecoin project. Zhao described the report as “FUD” (spreading fear, uncertainty, and doubt) and indicated he might sue for defamation.
“I may have to file a defamation lawsuit again,” CZ said on social media platform X. “Another smear campaign, supported by a rival, with so much untrue information in it that I don't even know where to begin.”
A Bloomberg report published yesterday alleged that Binance wrote the smart contract code for the USD1 stablecoin, launched by World Liberty Financial, a group affiliated with the Trump family. It also alleged that Zhao applied for a US presidential pardon after the cryptocurrency was used in a $2 billion UAE investment fund deal.
According to the information in the report, more than 90% of USD1's supply is currently held in Binance wallets, and it is suggested that this could generate tens of millions of dollars in interest income for the exchange annually.
Zhao, recalling his past legal battle with Bloomberg, brought up an apology published in July 2024. Bloomberg's Chinese-language publication admitted that a 2022 report accusing Binance of running a Ponzi scheme was “false and baseless” and decided to make a donation to charity in lieu of compensation.
*This is not investment advice.
