Recent allegations against Coinbase concern its involvement in a Bloomberg article about Binance and World Liberty Financial. Coinbase's chief legal officer, Paul Grewal, has denied these claims.
Grewal's Response to Allegations
Paul Grewal, Coinbase's chief legal officer, denied allegations in a post on social media platform X, stating that the exchange did not contribute to the Bloomberg story about World Liberty Financial and Binance. He labeled the claims as misinformation and stated that Coinbase is not a source for such stories and does not attack competitors. Grewal encouraged the search for the actual source of the claims to continue.
Allegations Against Binance and Zhao's Response
Former Binance CEO Changpeng Zhao criticized the Bloomberg article asserting that the exchange developed a smart contract for the newly launched stablecoin USD1. He labeled the article as a hit piece and suggested that a competitor may have sponsored it. Zhao also hinted at the possibility of suing Bloomberg for defamation due to past grievances against the media outlet concerning false claims about himself and the crypto industry.
Context of Bloomberg's Article on USD1 and Binance
Bloomberg's article claims that the stablecoin USD1, launched by World Liberty Financial, is linked to Binance's investments in the UAE sovereign fund. The article also alleges that the creation of USD1 is related to Zhao's attempts to secure a presidential pardon. USD1 reportedly has a circulating supply of $2.20 billion, with Binance holding around $2 billion. Zhao contests the validity of these claims.
The denials from Coinbase and Binance highlight the frustration of key players in the crypto industry regarding media coverage and stress the importance of accurate information in the context of ongoing market events.
