Changpeng “CZ” Zhao, co-founder and former CEO of Binance, has publicly denied any involvement with USD1, a stablecoin reportedly issued by World Liberty Financial (WLF), a crypto company with ties to former U.S. President Donald Trump. The rebuttal came in response to a recent Bloomberg article that linked Zhao and Binance to the creation and deployment of the stablecoin.
In a post on X (formerly Twitter), Zhao condemned the Bloomberg investigation as a “hit piece (sponsored by a competitor),” dismissing it as riddled with “so many factual errors” that he “doesn’t even know where to begin.” Zhao also hinted at potential legal action, stating he “might have to sue them again for defamation.”
Bloomberg Links Binance to USD1 and UAE Deal
According to Bloomberg, Binance allegedly developed the original smart contract for USD1, which has been used in a $2 billion transaction involving a UAE-based investment fund. The report further claimed that Zhao sought a presidential pardon shortly after the deal, implying a possible connection between the pardon request and the financial transaction.
Bloomberg also noted that over 90% of USD1 tokens remain in Binance-controlled wallets, suggesting the platform could be reaping tens of millions of dollars annually in interest revenue.
Reference to Past Legal Disputes with Bloomberg
In his response, Zhao pointed to a prior conflict with Bloomberg, citing a July 2024 apology issued by the media outlet’s Chinese-language edition. The apology retracted a 2022 article that had accused Binance of operating a Ponzi scheme, labeling the original headline “false and baseless.” Instead of damages, Bloomberg reportedly agreed to make a charitable donation to settle that dispute.
Zhao’s Legal History and Pardon Bid
Zhao previously pleaded guilty to one felony count as part of a 2023 settlement with U.S. authorities. Having served four months in prison, he revealed in May 2025 that he was seeking a presidential pardon from Trump—a move that could pave the way for his return to a leadership role in a U.S.-based crypto enterprise.
The controversy adds another layer to the complex relationship between Binance, U.S. regulators, and political figures, as the crypto industry remains under intense scrutiny.
