CZ, the former CEO of Binance, denied a Bloomberg report linking him to the USD1 stablecoin issued by World Liberty Financial, a company associated with Donald Trump. He called the article a “hit piece” in a post on X and said it included “so many factual errors” that he “doesn’t even know where to begin.” He also stated he might sue Bloomberg for defamation.
The report alleged that Binance created the original smart contract for USD1 stablecoin. It also said that CZ requested a presidential pardon shortly after a $2 billion UAE fund investment involving the stablecoin. According to the report, more than 90% of the token supply remains in Binance wallets, which could earn tens of millions in interest.
CZ Recalls Bloomberg Retraction Over Past Binance Claims
In his response, CZ referenced a previous dispute with Bloomberg. In July 2024, the outlet’s Chinese-language edition published an apology for a 2022 article that had accused Binance of running a Ponzi scheme. The statement admitted the claims were “false and baseless.” Rather than pay damages, Bloomberg donated to a charity chosen by CZ.
That case was closed until the current allegations regarding the Trump stablecoin and USD1 stablecoin brought the dispute back into the spotlight.
The USD1 stablecoin, along with other crypto projects linked to Trump, has drawn attention from U.S. lawmakers. The House is reviewing three crypto bills, including the GENIUS Act, which focuses on regulating payment stablecoins.
The GENIUS Act passed the Senate with bipartisan backing. Some lawmakers have raised questions about potential conflicts of interest due to Trump’s association with crypto ventures like World Liberty Financial.
At this stage, neither Binance nor World Liberty Financial has issued a statement about the smart contract development or wallet holdings tied to USD1 stablecoin.
CZ Denies WSJ Claims About Justin Sun Case
In April 2025, the Wall Street Journal reported that CZ had agreed to provide evidence against TRON founder Justin Sun as part of his legal settlement with the U.S. Department of Justice. CZ responded on X, saying, “WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn’t.”
He continued,
“People who become gov witnesses don’t go to prison. They are protected.”
So far, there is no official confirmation of cooperation from CZ, Binance, or U.S. authorities.
The situation involving the USD1 stablecoin, Binance wallets, and the reported UAE fund investment remains under scrutiny. The debate over political involvement in crypto continues as lawmakers assess potential regulatory changes.