- CZ reposted claims that Coinbase leaked Bloomberg’s report linking him and Binance to Trump’s crypto venture, viewing Binance’s U.S. return as a threat to its market share.
- The Bloomberg article alleged Zhao authored USD1’s smart contract and sought a presidential pardon after a US$2B UAE deal; CZ called it a “hit piece” and hinted at suing.
- Coinbase’s legal chief Paul Grewal denied involvement, stating the company “did not contribute to this story” and doesn’t attack competitors.
Binance’s co-founder Changpeng “CZ” Zhao has just amplified claims that Coinbase was behind a Bloomberg report linking Binance and Donald Trump’s crypto venture, World Liberty Financial.
It all happened on Sunday when Zhao reposted a tweet from commentator Matt Wallace accusing Coinbase executives of leaking the story to Bloomberg in an effort to undermine Binance.
The rationale here, according to Wallace, is that Coinbase views a potential pardon for Zhao and Binance’s return to the US as a threat to its market share.
Coinbase learned that a pardon for Binance’s CZ may be on the table and due to their industry high fees and poor customer service, higher ups at the crypto company fear their rival Binance returning to the states with full legal status.
A return to the U.S. would immediately cut into Coinbase’s market share and do severe damage to their bottom line.
Matt Wallace, crypto influencerRelated: Bitcoin Blasts Through $116K High as Short Sellers Take a $570M Beating
Zhao Seeks Presidential Pardon
Keep in mind that in early May Zhao said he’s looking for a presidential pardon even though he already did prison time. That’s because a pardon would immediately put him back in business in the US.
While Zhao did not add a comment to the repost, that repost was enough to spark things up. A few days ago, Zhao referred to the Bloomberg article as a “hit piece sponsored by a competitor” full of “factual errors”. He suggested legal action could follow. “Might have to sue them again for defamation,” he added.
Basically, the Bloomberg report alleged that Binance developed the smart contract behind USD1, the stablecoin tied to World Liberty Financial, a crypto initiative associated with Trump.
The report also claimed Zhao requested a presidential pardon after USD1 was used in a US$2B (AU$3.04B) investment deal with a UAE fund, and noted that more than 90% of USD1 tokens remain in Binance wallets, potentially earning tens of millions in interest annually.
Coinbase chief legal officer Paul Grewal publicly denied the accusation. “We absolutely did not contribute to this story. We don’t attack competitors,” he added.
Related: Matt Hougan: Tokenisation – Wall Street’s Next Trillion-Dollar Revolution
