CZ Accuses Coinbase of Political Interference
A new controversy is unfolding in the crypto world as Binance co-founder Changpeng “CZ” Zhao indirectly accused Coinbase of being the anonymous source behind a Bloomberg report that ties Binance to a Trump-affiliated stablecoin project, USD1.
🚨JUST IN: Evidence is emerging that COINBASE was the “anonymous” source behind the hit job on President Trump’s World Liberty Financial and Binance ‼️
— Matt Wallace (@MattWallace888) July 13, 2025
Coinbase learned that a pardon for Binance’s CZ may be on the table and due to their industry high fees and poor customer…
Claims Trigger Backlash Across Crypto Community
The post Binance co-founder Zhao indirectly accused Coinbase of leaking a report that links the platform to a Trump-affiliated stablecoin appeared first on FinanceBrokerage.
Drama erupted as crypto influencer Matt Wallace updated X (formerly Twitter), claiming that Coinbase executives were worried that a CZ pardon by former President Donald Trump and the Binance return to the U.S. would threaten Coinbase’s dominance. Wallace argues that this fear led Coinbase to leak information to Bloomberg to harm Binance’s reputation and thwart Trump’s crypto momentum.
CZ Stays Vague, But Retweets Allegations
CZ retweeted Wallace’s post that the report was a coordinated attack but did not confirm or deny the allegation himself. Wallace described Coinbase’s supposed actions as “anti-American,” igniting furious debate in the crypto world.
Sorry— this is pure misinformation. We absolutely did not contribute to this story.
— paulgrewal.eth (@iampaulgrewal) July 13, 2025
We don't attack competitors, and we welcome any businesses that share our goal of growing the crypto pie.
You should keep looking for an actual source. https://t.co/OoJIEVqntS
USD1 Stablecoin Tied to Trump Allies
A report by Bloomberg said that the smart contract for USD1, which is a stablecoin, was developed by Binance. World Liberty Financial (a crypto firm linked to Donald Trump and his sons) launched the crypto. Following a $2 billion investment deal that included a USD1 investment and a UAE sovereign wealth fund, CZ reportedly applied for a presidential pardon, the report said. Over 90% of the USD1 remains in the wallets of Binance, which also raises the question of interest profits.
CZ Threatens Legal Action Against Bloomberg
CZ hit back at the article, labeling it as a “hit piece sponsored by a competitor,” and threatened that Bloomberg could get sued for defamation. He said the article had “so many factual errors I don’t even know where to begin.”
Coinbase Responds: “We Did Not Leak the Story”
As speculation rises, Coinbase’s Chief Legal Officer Paul Grewal responded directly:
“I apologize—this is misinformation. We absolutely did not contribute to this story. We don’t go after competitors, and we welcome the addition of any business that is in the business of growing the crypto pie.”
Crypto, Politics, and the 2024 Race
As the 2024 U.S. presidential race sparks renewed interest in advocacy for pro-crypto policies, regulatory scrutiny and political influence are defining the future of crypto in the U.S. CZ’s possible pardon and Binance returning to the U.S. market could significantly alter the industry landscape and challenge Coinbase’s dominance.
Conclusion
Binance and Coinbase’s latest spat reveals the developments that drive crypto today and the politics behind it all. CZ suspects corporate sabotage as he prepares for a lawsuit, while Coinbase maintains its innocence amid ethical competition. As competition rises for control over the U.S. crypto market, trust, transparency, and responsible reporting will matter more than ever.
