Coinbase Denies Leaking Trump's USD1 Story to Bloomberg

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Coinbase Denies Tipping Off Bloomberg on Trump's USD1 Stablecoin Project

Written by Aaron S.,

Editor-In-Chief

Last Updated: July 14, 2025

Key Takeaways

CZ reshared a claim that Coinbase leaked details to Bloomberg about Binance’s role in Trump’s USD1 stablecoin project;
Coinbase’s legal chief, Paul Grewal, called it false and said the company does not attack competitors;
Bloomberg reported that Binance created a USD1’s smart contract and that CZ sought a pardon after a $2 billion UAE-linked deal.

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Changpeng "CZ" Zhao, co-founder of Binance $13.72B , has accused Coinbase $3.42B of feeding Bloomberg information about Binance's ties to a Trump-linked stablecoin project.

The claim came from Matt Wallace, a crypto commentator, who argued that Coinbase had a motive to undermine Binance and Zhao.

In a July 13 post on X, Wallace suggested that Coinbase feared Zhao might receive a presidential pardon and bring Binance back to the US market with full legal status.

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Wallace also criticized Coinbase for allegedly targeting Binance and President Donald Trump. He said it was wrong for the company to target a political figure solely to weaken a business rival.

Zhao simply reshared Wallace’s post without adding any comment or clarifying whether he agreed with the claim.

However, Coinbase’s chief legal officer, Paul Grewal, denied the allegations:

Sorry—this is pure misinformation. We absolutely did not contribute to this story. We don't attack competitors, and we welcome any businesses that share our goal of growing the crypto pie.

The Bloomberg report at the center of the dispute claimed Binance was behind the smart contract that powers USD1, a stablecoin issued by World Liberty Financial and tied to President Trump’s brand.

According to the article, Zhao also sought a presidential pardon after USD1 was used in a $2 billion transaction involving an investment from a UAE fund. The report further noted that over 90% of USD1 tokens remain in wallets controlled by Binance.

Zhao dismissed the Bloomberg article as a "hit piece" filled with inaccuracies and suggested he might sue the outlet for defamation.

Meanwhile, Zhao suggested a new type of decentralized trading platform that would keep user activity hidden. What did he say? Read the full story.