The CEO of cryptocurrency exchange Binance, Changpeng Zhao, has commented on a recent Bloomberg report containing allegations against his company, stating the possibility of a lawsuit against the media.
Bloomberg's Allegations Against Binance
According to the Bloomberg report, Binance developed the contract code for the USD1 token issued by World Liberty Financial, a firm linked to Trump-era crypto initiatives. The report also claimed Zhao sought a presidential pardon shortly after USD1 was involved in a $2 billion deal with a UAE investment group, and that most of the stablecoin supply remains parked in Binance-linked wallets.
Changpeng Zhao's Response
Changpeng Zhao denied Bloomberg's claims, describing them as falsehoods that might be sponsored by rivals. He referenced his previous legal clash with Bloomberg over a separate report that accused Binance of wrongdoing, which was later retracted with a formal apology from the publication’s Chinese division in July 2024.
Context and Potential Consequences
The article comes amid increasing scrutiny of crypto initiatives linked to Donald Trump, which are under analysis by lawmakers. On Capitol Hill, Republicans are advancing new legislation like the GENIUS Act, a stablecoin regulatory bill that recently passed the Senate, despite Democratic concerns over Trump’s financial ties to crypto ventures.
Changpeng Zhao's response to Bloomberg's allegations highlights the tensions in the crypto industry, where assets and political affiliations are subject to scrutiny, potentially leading to long-term consequences.
