CZ Slams Bloomberg Report As Defamatory

An explosive Bloomberg investigation accuses Binance and its co-founder Changpeng Zhao of supporting a stablecoin linked to Donald Trump. Named USD1 and issued by World Liberty Financial, this token has sparked many controversies. CZ denounces it as a “damning article” and is considering defamation lawsuits. Such a case illustrates the growing tensions between political power, financial regulation, and crypto influence.

CZ denounces a “damning article” by Bloomberg

While the SEC has just dropped its lawsuits against CZ, Bloomberg claims that Changpeng Zhao, former CEO of Binance, is involved in the launch of the USD1 stablecoin 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 asserts that Binance developed the initial source code of the smart contract for this stablecoin, and that a $2 billion transaction involving an investment fund based in the United Arab Emirates used USD1 to invest in Binance.

Bloomberg also suggests that CZ requested a presidential pardon from Trump shortly after this operation, implying a possible link between the two events. These revelations were strongly disputed by CZ, who reacted on X denouncing an article “filled with so many factual errors” that he “does not even know where to start,” adding: “I may have to sue them again for defamation.”

4. FUD. Bloomberg just wrote another hit piece (sponsored by a competitor) containing so many factual errors I don't even know where to begin.

Might have to sue them again for defamation. https://t.co/FevGMArHj8

— CZ 🔶 BNB (@cz_binance) July 11, 2025

The elements reported by Bloomberg are numerous and potentially significant. According to the article :

• Binance allegedly wrote the smart contract of USD1, placing the company at the heart of its technological structure ;
• More than 90 % of USD1 tokens are still stored in wallets controlled by Binance, generating according to Bloomberg passive annual revenues of several tens of millions of dollars ;
• A $2 billion transaction from a sovereign wealth fund of the United Arab Emirates was conducted via USD1, a few weeks before a presidential pardon request was made by CZ ;
• Bloomberg does not provide direct evidence linking Trump to the transaction but implies potential political connections through WLF.

The article, though suggestive, does not cite official sources to verify the direct involvement of CZ in these operations. Binance, for its part, has not issued a formal statement at this stage, leaving CZ to defend his position personally on social media.

Between Legal Backlog and Media War : A Toxic Climate

The current case fits into a series of legal disputes opposing CZ to some major Western media for several years. In July 2024, Bloomberg Businessweek (Chinese edition) issued an official apology after publishing in 2022 an article accusing Binance of being a Ponzi scheme.

The media admitted that its headline was “false and unfounded,” and chose to make a charitable donation instead of paying damages. In his recent publication, CZ recalls this episode by sharing the link to the official retraction. He now seems determined to systematically defend his image against what he perceives as misinformation campaigns.

Furthermore, the Wall Street Journal, which claimed in April that CZ had agreed to provide evidence against Justin Sun, founder of Tron, as part of a deal with the U.S. Department of Justice.

Again, CZ firmly denied this on X, stating that “those who become government witnesses do not go to jail”, adding that he had heard rumors that WSJ employees were paid to smear him.

WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn't. 🤯

People who become gov witnesses don't go to prison. They are protected.🤷‍♂️

I heard someone paid WSJ employees to smear me.😅 https://t.co/xqpnBwvlmi

— CZ 🔶 BNB (@cz_binance) April 12, 2025

Through these episodes, an extremely conflicted relationship emerges between CZ and certain American press outlets, marked by mistrust and mutual accusations of manipulation.

In the longer term, this new controversy could have significant repercussions on Binance’s perception among regulators and the public, at a time when the legislative framework around stablecoins is evolving in the United States. Congress is currently discussing the GENIUS Act, a bipartisan proposal aiming to regulate stablecoins, which could be influenced by this type of controversy.