Unconfirmed Report Claims Binance Founder CZ Was Involved in USD1 Stablecoin Launch

June 28, 2025 • Updated

[Cryptocurrency Industry], [International Business], [US Politics]

Binance co-founder and former CEO Changpeng “CZ” Zhao has publicly disputed a recent Bloomberg report alleging his involvement in the development of USD1, a stablecoin linked to World Liberty Financial—a company reportedly affiliated with former US President Donald Trump.

In response to the Bloomberg investigation, Zhao published a post on social platform X, describing the article as a “hit piece (sponsored by a competitor)” riddled with “so many factual errors” and suggesting he may need to pursue “defamation” charges. “[M]ight have to sue them *again* for defamation,” Zhao tweeted.

Bloomberg’s Allegations

Bloomberg reported that Binance developed the original smart contract code for USD1, a stablecoin issued by World Liberty Financial. The report further alleged that Zhao sought a presidential pardon from Trump shortly after USD1 was used—a deed Barclays supposedly secured for a $2 billion investment by a UAE-based fund into Binance.

More than 90% of USD1 tokens are reportedly still held in Binance wallets, generating significant annual interest revenue.

A Pattern of Legal Disputes

Zhao’s current remarks reference a prior legal conflict with Bloomberg. In 2024, the Chinese-language version of the publication issued a retraction for a 2022 headline falsely accusing Binance of operating a Ponzi scheme. At that time, Bloomberg agreed to donate to charity rather than issue a monetary apology.

Zhao, who pleaded guilty to one felony charge as part of a settlement with US authorities in 2023, expressed interest in seeking a presidential pardon in May. Such a grant could potentially allow him to serve in a managerial role at a US crypto company.

Political Context and Regulatory Scrutiny

World Liberty Financial is reportedly connected to Trump, placing Zhao’s recent plea into a hyper-partisan regulatory landscape. Trump’s crypto businesses, including World Liberty Financial, the official TRUMP crypto venture, and campaign contributions from crypto executives, have drawn heavy legislative scrutiny since before his presidency.

Current Republican leaders in the House stand poised to pass crypto regulations, including the bipartisan GENIUS Act, which would provide framework for payment stablecoins.

History of Media Disputes

Zhao has previously disputed reporting from multiple media outlets seeking to undermine his public image. In April, he addressed a Wall Street Journal report stating he had agreed to provide evidence against Tron founder Justin Sun.

“WSJ is really TRYING here,” Zhao wrote at the time. “They seem to have forgotten who went to prison and who didn’t.”