In recent developments within the cryptocurrency landscape, Changpeng “CZ” Zhao, the co-founder of Binance, has publicly refuted claims made by Bloomberg connecting him to a stablecoin affiliated with World Liberty Financial (WLF). This comes amid heightened scrutiny of cryptocurrency figures and their associations with political entities and individuals, including former President Donald Trump.
CZ’s Legal Actions Against Bloomberg
According to a report from July 11, Bloomberg suggested that Binance had been instrumental in developing the smart contract for the WLF stablecoin (USD1). The article also pointed to USD1’s involvement in a significant $2 billion investment deal orchestrated by a firm based in Abu Dhabi.
CZ, previously pleading guilty to a felony, has sought a federal pardon from President Trump, a move that Bloomberg insinuated was linked to WLF’s stablecoin transaction. Such allegations raise crucial questions regarding potential conflicts of interest in the rapidly evolving cryptocurrency sector.
Reacting to these claims on social media, Zhao expressed his frustration:
It’s just misinformation. Bloomberg spins another narrative that is riddled with inaccuracies. Legal action for defamation might be unavoidable.
In a follow-up post on X, he recalled a previous legal encounter with Bloomberg, which resulted in an apology from the media giant and a charitable donation. The apology stressed a commitment to improved journalistic standards, a promise that has evidently not been fulfilled.
This newfound conflict indicates that CZ is prepared to pursue legal avenues against Bloomberg once more, possibly setting the stage for a contentious battle in the courts.
Are Media Outlets Targeting Zhao?
The Bloomberg article is not an isolated case; the Wall Street Journal (WSJ) made similar claims in May, alleging that Zhao aided in facilitating introductions for individuals connected to the Trump family’s WLF during international travels.
CZ firmly rebuffed these assertions, labeling them as unfounded. He argued that he and the broader cryptocurrency community are being unfairly targeted by factions intent on stifling the growth of digital assets in the United States.
