Binance Founder Threatens to Sue Bloomberg – Here is Why
Binance co-founder Changpeng “CZ” Zhao is calling out Bloomberg over a recent article that claims he’s connected to USD1, a stablecoin tied to Donald Trump’s crypto allies.
In a fiery post on X, Zhao dismissed the investigation as misleading and potentially defamatory, hinting at legal action.
The Bloomberg report alleged that Binance developed the contract code for USD1, a token issued by World Liberty Financial—a firm associated with Trump-era crypto initiatives. It also claimed Zhao sought a presidential pardon shortly after USD1 was involved in a $2 billion deal with a UAE investment group, and that most of the stablecoin supply remains parked in Binance-linked wallets.
Zhao fired back, saying the article was filled with falsehoods and possibly sponsored by rivals. He referenced his previous legal clash with Bloomberg over a separate report that accused Binance of operating a Ponzi scheme—claims that were later retracted with a formal apology from the publication’s Chinese division in July 2024.
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Although Zhao pleaded guilty to a single felony charge in 2023 as part of a settlement with U.S. authorities, he has already served four months in prison and has publicly confirmed applying for a pardon from President Trump. That move could pave the way for his re-entry into the U.S. crypto sector.
The timing of the article comes as Trump’s crypto presence—including campaign-linked tokens, stablecoins, and fintech partnerships—faces increased scrutiny from lawmakers. On Capitol Hill, Republicans are pushing forward with new legislation like the GENIUS Act, a stablecoin regulatory bill that recently passed the Senate, despite Democratic concerns over Trump’s financial ties to crypto ventures.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
