Binance’s CZ Threatens to Sue Bloomberg Over Trump Stablecoin Report

CZ Slams Bloomberg Article Linking Him to Trump-Linked Stablecoin

Binance co-founder Changpeng “CZ” Zhao has refuted a Bloomberg piece linking him to USD1, a stablecoin launched by Trump-linked World Liberty Financial (WLF). CZ took to X to brand the article a “hit piece” paid for by a competitor, and that it contained so many factual inaccuracies he “doesn’t even know where to start.”

Zhao threatened legal action, stating, “Might have to sue them again for defamation.”

Bloomberg Allegations: USD1, Pardon Request, and Binance Wallets

The Bloomberg article alleged that Binance developed the original smart contract for USD1 and that Zhao asked for a U.S. presidential pardon soon after the token was utilized in a $2 billion transaction with a UAE-based fund investing in Binance.

It also claimed that over 90% of USD1 tokens remain in Binance-controlled wallets, which could be generating tens of millions of dollars in interest annually.

Background on CZ and Bloomberg Legal Spats

Zhao referred to Bloomberg’s July 2024 retraction of a 2022 Chinese-language report incorrectly accusing Binance of running a Ponzi scheme. Bloomberg had apologized and made a charitable donation in place of damages.

This past controversy supports CZ’s case, as he charges Bloomberg with repetitive defamatory behavior.

Trump, Stablecoins, and Ongoing Crypto Scrutiny

Trump’s crypto-related business ventures—such as WLF and a memecoin—have fallen under political scrutiny. Despite that, House Republicans are sponsoring three crypto bills, including the GENIUS Act, to regulate payment stablecoins. The bill passed the Senate with bipartisan support.

Zhao’s Past Disagreement With WSJ

In April, Zhao also denied a report by the Wall Street Journal that he had agreed to provide evidence against Tron founder Justin Sun in exchange for leniency. He accused the WSJ of being part of a smear campaign, with bribery of reporters being suggested.

“WSJ is really TRYING here,” tweeted Zhao, noting that cooperating witnesses don’t typically do prison time—unlike him, who served four months.