A recent Bloomberg article raises controversies surrounding Binance and its co-founder Changpeng Zhao, claiming ties to the USD1 stablecoin attributed to Donald Trump.
Bloomberg's Accusations Against CZ
In a recent investigation, Bloomberg claims that Binance, co-founded by Changpeng Zhao, was involved in the development of the USD1 stablecoin, which has ties to Donald Trump. The article states that Binance wrote the initial source code for the smart contract for USD1, and over 90% of the tokens are still stored in wallets controlled by Binance. Additionally, a $2 billion transaction was reportedly conducted with a sovereign investment fund from the United Arab Emirates via USD1.
Changpeng Zhao's Reaction
Changpeng Zhao vehemently denied the accusations, calling the article 'filled with so many factual errors' and expressing intent to sue Bloomberg for defamation. In his response on platform X, he indicated that he did not even know where to begin in refuting the claims, adding that he might have to sue them again for defamation.
Media War and Legal Conflicts
This incident is part of an ongoing conflict between CZ and western media, which has accused Binance of various wrongdoings over the years. Notably, in 2024, Bloomberg issued a public apology for an article that labeled Binance as a Ponzi scheme. Such events highlight the serious disagreements between CZ and certain American media, which could negatively impact Binance's perception and increase regulatory pressure amidst discussions on new legislation concerning stablecoins in the US.
The information published by Bloomberg continues to raise questions about potential political connections and the influence of cryptocurrencies on financial markets. The escalation of media and legal conflicts may have long-term consequences for Binance and its position in the world of stablecoins.
