CZ Slams Bloomberg Over Trump Stablecoin; Coinbase Denies Involvement

Bloomberg's report claims that Binance was involved in creating the smart contract for USD1, the U.S. dollar-pegged stablecoin issued by World Liberty Financial (WLFI). According to the article, Binance not only wrote the core code for the token but also retained more than 90% of its supply in company-controlled wallets.

CZ, who stepped down as Binance CEO in late 2023 following a settlement with U.S. authorities, took to social media to push back. In a strongly worded post, he criticized Bloomberg for publishing what he described as a “hit piece,” stating that the article contained “so many factual errors” that it could become the subject of a defamation lawsuit.

This is not the first time Bloomberg and Binance have clashed. In 2022, Bloomberg Businessweek’s Chinese edition published an article referring to Binance as a “Ponzi scheme,” prompting Binance to file a defamation suit. The article was later retracted, and Bloomberg issued a correction. CZ’s renewed threat to pursue legal action over the latest piece signals the possibility of another protracted legal battle.

Stablecoins have emerged as a battleground for influence, not just between corporations but also between countries and political blocs. The USD1 token, with its close ties to the Trump administration and ambitions to become a flagship U.S. stablecoin, has attracted scrutiny for its governance, reserves, and transparency.

Allegations in Bloomberg’s report could trigger a renewed wave of regulatory attention, particularly if ties between Binance, CZ, and WLFI are confirmed. The stablecoin sector, already under review by U.S. lawmakers and global financial watchdogs, may see tighter disclosure requirements in the wake of these developments.