Update (July 13, 23:18 UTC) This article has been updated to include a response to the claims posted by Coinbase CLO Paul GrewalBinance co-founder and former CEO Changpeng CZ Zhao has reposted a tweet alleging that Coinbase was the anonymous source behind Bloombergs report targeting Trumps crypto project, 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 US market would threaten their market share, prompting efforts to undermine competitors.Binance is the worlds #1 crypto exchange, Wallace wrote, warning that Binances return with full legal status could severely damage Coinbases business.What is most shocking is that Coinbase would target President Trump in an attempt to hurt their competition.
This is anti-American! Will Coinbase fess up and face the heat for their poor decision? It will all come out soon! he wrote.Zhao retweeted the post without confirming it or denying it.
Cointelegraph reached out to both Binance and Coinbase for commentbut had not received a response by publication.CZ reposting Wallaces post.
Source: Matt WallaceHowever, Coinbase chief legal officer Paul Grewal responded to Wallaces post on social media, denying the rumors.
Sorry this is pure misinformation.
We absolutely did not contribute to this story.
We don't attack competitors, and we welcome any businesses that share our goal of growing the crypto pie, Grewal wrote on X.Source: Paul GrewalRelated:Is this real? CZ questions TONs UAE Golden Visa as govt sources stay silentBinance linked to Trumps USD1 stablecoinBloombergs report alleged that Binance developed the smart contract for USD1, a stablecoin issued by World Liberty Financial, linked to former President Donald Trump.The report also claimed Zhao applied for a presidential pardon shortly after USD1 was used in a $2 billion deal involving a UAE funds investment in Binance.
It noted that over 90% of USD1 tokens remain in Binance wallets, potentially generating tens of millions in annual interest revenue.On Sunday, Zhao called the article a hit piece (sponsored by a competitor) filled with so many factual errors that he doesnt even know where to begin.
He added, Might have to sue them again for defamation.Related:Binance ties to Kenyan crypto board raise monopoly concerns: ReportZhao seeks presidential pardonZhaopleaded guilty to one felony count as part of a settlement with US authorities in 2023.
Although he had already served four months in prison, he said in May that he wasseeking a presidential pardon from Trump.
Such a pardon could potentially allow Zhao to return to a managerial or operational role at a US crypto business.Meanwhile, Zhao has been busy since his release.
On April 4,he said he wouldbegin advising Kyrgyzstan on blockchain and crypto-related regulation after signing an MOU with the countrys foreign investment agency.On April 7, Zhaowas appointed as an adviser to Pakistans Crypto Council, a newly formed regulatory body tasked with overseeing the countrys embrace of blockchain technology and digital assets.Magazine:Crypto City Guide to Seattle: Site of CZs downfall and pot crypto vendors