Update (July 13, 23:18 UTC) This short article has been updated to include a response to the claims published by Coinbase CLO Paul GrewalBinance co-founder and previous CEO Changpeng CZ Zhao has reposted a tweet alleging that Coinbase was the confidential source behind Bloombergs report targeting Trumps crypto task, World Liberty Financial, and Binance.In a Sunday post on X, crypto commentator Matt Wallace claimed Coinbase executives feared a potential pardon for Zhao and Binances return to the United States market would threaten their market share, triggering efforts to weaken competitors.Binance is the worlds # 1 crypto exchange, Wallace composed, alerting that Binances return with complete legal status might seriously damage Coinbases business.What is most shocking is that Coinbase would target President Trump in an effort to injure their competitors.
This is anti-American! Will Coinbase fess up and face the heat for their bad decision? It will all come out soon! he wrote.Zhao retweeted the post without validating it or rejecting it.
Cointelegraph reached out to both Binance and Coinbase for commentbut had not gotten an action by publication.CZ reposting Wallaces post.
Source: Matt WallaceHowever, Coinbase chief legal officer Paul Grewal responded to Wallaces post on social networks, rejecting the reports.
Sorry this is pure false information.
We definitely did not contribute to this story.
We dont attack competitors, and we welcome any companies that share our goal of growing the crypto pie, Grewal composed on X.Source: Paul GrewalRelated: Is this genuine? CZ questions TONs UAE Golden Visa as govt sources stay silentBinance linked to Trumps USD1 stablecoinBloombergs report alleged that Binance developed the clever agreement for USD1, a stablecoin released by World Liberty Financial, connected to previous President Donald Trump.The report likewise declared Zhao got a presidential pardon shortly after USD1 was used in a $2 billion deal including a UAE funds financial investment in Binance.
It noted that over 90% of USD1 tokens stay in Binance wallets, possibly creating 10s of millions in yearly interest revenue.On Sunday, Zhao called the post a hit piece (sponsored by a competitor) filled with a lot of factual mistakes that he does not even understand where to begin.
He added, Might have to sue them once again for defamation.Related: Binance ties to Kenyan crypto board raise monopoly issues: ReportZhao looks for governmental pardonZhaopleaded guilty to one felony count as part of a settlement with United States authorities in 2023.
Although he had actually already served four months in prison, he stated in May that he wasseeking a presidential pardon from Trump.
Such a pardon might potentially enable Zhao to return to a supervisory or functional role at an US crypto business.Meanwhile, Zhao has been busy considering that his release.
On April 4, he said he wouldbegin advising Kyrgyzstan on blockchain and crypto-related guideline after signing an MOU with the countrys foreign financial investment agency.On April 7, Zhaowas selected as an adviser to Pakistans Crypto Council, a newly formed regulatory body tasked with overseeing the nations embrace of blockchain technology and digital assets.Magazine: Crypto City Guide to Seattle: Site of CZs downfall and pot crypto suppliers