Binance co-founder Changpeng Zhao (CZ) flat-out refuted an article by Bloomberg that claimed he approved USD1. The supposed USD 1 that goes along with the former U.S. World Liberty Financial created President Donald Trump’s entity, which now faces growing scrutiny.
Zhao responded on the microblog platform X and declared the article a staged attack designed to mislead readers with false statements. He referred to the fact that the article comprised so many errors that litigation may become a problem once more.
The Bloomberg report accused Binance of writing the original USD1 smart contract tied to a $2 billion UAE deal. The contract reportedly involved investing in Binance, where over 90 percent of the token supply remains stored.
Zhao denied seeking a presidential pardon following that deal and stated the report inappropriately tied him to political favors. The report additionally placed the interest from the USD1’s reserves at tens of millions annually.
Crypto industry faces intensifying political pressure
The controversy hits just as Zhao tries to rebuild his image following time spent in U.S. legal woes. Zhao pleaded guilty to one felony charge and served four months in jail, among the conditions of a settlement agreement between himself and U.S. prosecutors in 2023.
He then publicly stated intentions to re-open U.S. cryptocurrency business transactions by requesting former President Trump to pardon him. There has yet to come an official announcement that there was consideration on the pardon or that there was any involvement in the USD1 matter.
Zhao sued the Bloomberg office in China back in 2022 regarding an article that referred to Binance as a Ponzi scheme. The publication then issued a retraction and apology back in July 2024, referring to its original headline as false and misleading.
Meanwhile, Zhao still denounces reports by the mainstream press that he considers to be politically motivated or driven by competitors from the cryptocurrency industry. He further accused the Wall Street Journal in April of lying about him conspiring against the head of Tron, Justin Sun.
As U.S. legislators discuss pending crypto bills, Trump’s crypto-associated businesses come under increasing scrutiny. Legislators are currently examining the GENIUS Act, a bill to regulate stablecoins, which just passed the Senate on a bipartisan vote.
