Coinbase Accused of Underhanded Tactics Against Binance

Coinbase has been named as an «anonymous source» by Bloomberg in a recent article discussing Binance’s connections with the USD1 stablecoin. This claim was made by crypto expert Matt Wallace.

In a piece published by Bloomberg on July 11, it was reported that Binance had developed the technological framework for USD1 under World Liberty Financial (WLFI). Anonymous sources from the article indicated that Changpeng Zhao (CZ) is attempting to secure a pardon from U.S. President Donald Trump, which they believe would enable him to regain leadership of the exchange.

Wallace identified Coinbase as the «anonymous source.» His tweet has been reshared by Binance’s founder.

«Binance is a leading global cryptocurrency exchange. A return to the U.S. could immediately decrease Coinbase’s market share and significantly impact its profits. It is particularly surprising that the platform chose to target President Trump in an effort to harm its competitor. This is an un-American act!» Wallace stated.

Coinbase’s Chief Legal Officer, Paul Grewal, responded to these allegations, labeling Wallace’s claims as «disinformation»:

«We had no involvement in that article. We do not attack our competitors and welcome any companies that share our goal of advancing the crypto market.»

In March, Bloomberg and WSJ published articles asserting that Zhao was seeking a pardon amid discussions of business deals with Trump’s family. CZ denied the journalists’ claims and, on July 11, made a post calling Bloomberg’s article a hit piece, suggesting potential legal action.

It’s worth noting that in April 2024, CZ pleaded guilty to violations of U.S. law and served four months in an American prison.