Binance’s Zhao Accuses Coinbase of Manipulation
Changpeng “CZ” Zhao, the co-founder and former CEO of Binance, recently shared a tweet suggesting that Coinbase may be the “anonymous” source behind the allegations involving Trump’s crypto initiative, World Liberty Financial, as well as a Bloomberg report focused on Binance.
In a post on X, crypto analyst Matt Wallace stated that Coinbase executives might be pushing initiatives to threaten Binance’s market share, particularly because they are concerned about Zhao and Binance potentially making a comeback in the US. He claimed that if Binance were to regain its legal standing, it could inflict significant damage on Coinbase’s business.
“It’s pretty shocking to think that Coinbase would go so far as to target a former president to gain an edge over the competition,” Wallace added. “Is this a response to their own poor decisions? We might find out soon!”
Zhao shared the tweet but did not clarify whether he agrees with the claims. Cointelegraph attempted to reach out to both Binance and Coinbase for comments, but did not receive any responses at the time of publication.
Allegations of Binance’s Connection to Trump’s Stablecoin
A Bloomberg report claimed that Binance was involved in the development of a USD1 stablecoin smart contract issued by World Liberty Financial, which is associated with former President Donald Trump. The report also suggested that Zhao sought a presidential pardon shortly after USD1 was involved in a $2 billion transaction, which included an investment in a UAE fund linked to Binance. Zhao indicated that over 90% of USD1 tokens are held in Binance’s wallet, with potential annual interest revenues reaching tens of millions.
Reacting to the Bloomberg article, Zhao described it as a “hit piece” and criticized it for containing numerous factual inaccuracies. He remarked, “I don’t even know where to start; we might have to consider legal action for defamation.”
Zhao’s Pursuit of a Presidential Pardon
In 2023, Zhao pleaded guilty to a felony count as part of a settlement with US authorities and had already spent four months in prison. He revealed in May that he is looking for a presidential pardon from Trump, which may enable him to resume his role in US cryptocurrency operations.
Since his release, Zhao has been active in various initiatives. On April 4, he mentioned plans to provide advice to Kyrgyzstan regarding blockchain and crypto regulations after signing a memorandum of understanding with the country’s foreign investment agencies.
Just a few days later, on April 7, he was named an advisor to Pakistan’s Crypto Council, a newly formed regulatory body aimed at overseeing the adoption of blockchain technology and digital assets.
