- Zhao says Bloomberg’s report on Trump stablecoin is full of errors.
- He hinted he may sue the outlet again for defamation.
- The report alleges Binance helped create and promote the Trump-linked USD1 coin.
Binance co-founder and ex-CEO Changpeng “CZ” Zhao pushed back against a Bloomberg investigation linking him to a Trump-backed stablecoin.
He called the story “FUD” and suggested that he might pursue legal action.
“Might have to sue them again for defamation,” Zhao wrote on X after the article was published. “Another hit piece, sponsored by a competitor, containing so many factual errors I don’t even know where to begin.”
The Bloomberg report, published on Friday, alleges that Binance wrote the original smart contract code for USD1, the stablecoin issued by Trump-affiliated World Liberty Financial.
It also claims Zhao applied for a presidential pardon not long after the coin was used in a $2 billion investment deal involving a UAE fund’s stake in Binance.
More than 90% of USD1’s supply reportedly remains in Binance wallets, potentially generating tens of millions of dollars in annual interest.
Zhao, who pleaded guilty in 2023 to violating US anti-money laundering laws, ended up serving four months in prison on top of a $50 million fine.
He also referenced his prior legal dispute with Bloomberg, linking to a July 2024 apology from the publication’s Chinese-language edition.
That statement retracted a 2022 article accusing Binance of operating a Ponzi scheme and described the headline as “false and baseless.”
Bloomberg agreed to make a charitable donation in lieu of damages.
This latest clash follows another incident in April, when Zhao denied a Wall Street Journal report claiming he agreed to cooperate with US prosecutors in a separate case involving TRON founder Justin Sun.
Both men rejected the allegation, calling it an attempt to stir division.
Crypto market movers
- Bitcoin has lost 0.1% in value over the past 24 hours and is trading at $117,725.
- Ethereum is down 0.6% in the same period to $2,965.
What we’re reading
- Ben ‘BitBoy’ Armstrong arrested again in Georgia on harassment charges — DL News
- Venn Researchers Discover Backdoor That Left $10M Vulnerable Onchain — Unchained
- What’s driving this new all-time high? — Milk Road
- Bitcoin price breaks $118,800 record but this rare trifecta could send it even higher, says Bitwise — DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
