Coinbase has refuted claims of its connection to Binance and the USD1 stablecoin project, which has come under scrutiny following a Bloomberg article.
Coinbase's Statement
On July 13, Coinbase Chief Legal Officer Paul Grewal issued a statement on X, referring to the rumors as 'pure misinformation' and confirming that the company had no involvement in the publication of the article. He stated, 'We absolutely did not contribute to this story,' emphasizing that Coinbase does not undermine competitors and supports all initiatives that promote the growth of the crypto industry.
Controversial Bloomberg Report
On July 11, a Bloomberg article reported that Binance had helped develop the USD1 stablecoin issued by World Liberty Financial, a company linked to Donald Trump. The report claimed that Binance was responsible for the token's smart contract and played a role in a $2 billion investment in the stablecoin from a UAE-based fund. It also stated that over 90% of the USD1 supply remains in Binance wallets.
Changpeng Zhao's Reaction
Changpeng Zhao, the former CEO of Binance, criticized the report, calling it 'FUD' and accusing Bloomberg of factual inaccuracies. He also suggested that the story might have been 'sponsored by a competitor' and hinted at the possibility of a defamation lawsuit, referencing a previous legal dispute with the outlet in 2024.
Thus, the situation surrounding Binance and Coinbase continues to generate controversy in the crypto industry, highlighting the importance of verifying information and trusting sources.
