An explosive survey by Bloomberg accuses Binance and its co -founder Changpeng Zhao of having supported a stablecoin linked to Donald Trump. Called USD1 and issued by World Liberty Financial, this token creates many controversies. CZ denounces an “dependent article” and envisages prosecution for defamation. Such a case illustrates the growing tensions between political power, financial regulation and crypto influence.
In short
- Bloomberg publishes a controversial investigation linking Changpeng Zhao (CZ), ex-CEO of Binance, at the Stablecoin USD1, presented as being close to Donald Trump.
- CZ categorically refutes these accusations, denouncing an article “full of factual errors” and evokes a new legal action against Bloomberg.
- According to Bloomberg, Binance has developed the source code of Stablecoin USD1, and more than 90 % of the tokens are still stored on its wallets.
- The case is part of an ancient media conflict between CZ and several major financial titles, including Bloomberg and the Wall Street Journal.
CZ denounces a “dependent article” of Bloomberg
While the SEC has just abandoned its prosecution against CZ, Bloomberg argues that Changpeng Zhao, ex-CEO of Binance, would be involved in the launch of the Stablecoin USD1, linked to Donald Trump, in a recent article. This token is issued by World Liberty Financial (WLF), a crypto company close to the American president.
The article affirm That Binance would have developed the initial source code of the Smart Contract of this stablecoin, and that a transaction of $ 2 billion involving an investment fund based in the United Arab Emirates would have used USD1 to invest in Binance.
Bloomberg also suggests that CZ would have asked Trump a presidential pardon shortly after this operation, insinuating a possible link between the two events. These revelations were strongly challenged by CZ, who reacted on X by denouncing an article “Filled with so many factual errors” That he “does not even know where to start”, adding: “I might again have to continue them for defamation”.
The elements reported by Bloomberg are numerous and potentially heavy with consequences. According to the article:
- Binance would have written the USD1 smart contract, placing the company at the heart of its technological structure;
- More than 90 % of USD1 tokens are still stored in Binance controlled portfolios, generating passive annual income of several tens of millions of dollars, according to Bloomberg;
- A transaction of $ 2 billion from a sovereign fund of the United Arab Emirates was allegedly carried out via USD1, a few weeks before a presidential request for grace made by CZ;
- Bloomberg does not provide direct evidence connecting Trump to the transaction, but insinuated from potential political connections through WLF.
The article, although suggestive, does not cite official sources to check the direct involvement of CZ in these operations. Binance, for its part, did not publish a formal press release at this stage, leaving CZ to defend its position personally on social networks.
Between judicial passive and media war: a deleterious climate
The current affair is part of a series of litigation which has opposed CZ for several years to certain major Western media. In July 2024, Bloomberg Businessweek (Chinese edition) presented official apology after having published in 2022 an article accusing Binance of being a Ponzi system.
The media had recognized that its title was “false and baseless”, and had chosen to make a charitable donation instead of paying damages. In its recent publication, CZ recalls this episode by sharing the link to official withdrawal. He now seems determined to systematically defend his image against what he perceives as disinformation campaigns.
In addition, the Wall Street Journal, which affirmed In April that CZ would have agreed to provide evidence against Justin Sun, founder of Tron, within the framework of an agreement with the American justice department.
Again, Cz denied firmly on X, saying that “Those who become witnesses to the government do not go to prison”adding that he had heard rumors that WSJ employees were paid to dirty it.
Through these episodes, an extremely conflictual relationship is taking shape between CZ and certain American press organs, a relationship marked by distrust and crossed accusations of manipulation.
In the longer term, this new controversy could have significant repercussions on the perception of Binance to regulators and the public, at a time when the legislative framework around Stablecoins is changing in the United States. The Congress is currently discussing the Genius Act, a Bipartisan proposal aimed at supervising stablecoins, which could be influenced by this type of controversy.
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