Coinbase Tipping Bloomberg Just To Bring Its Competition Down

Binance former CEO Changpeng “CZ” Zhao has recently shared a tweet by crypto commentator Matt Wallace, where Wallace revealed Coinbase as the anonymous informant behind all of Bloomberg's report targeting Trump and Binance.

In his post on Sunday, Wallace claimed that out of the fear of Binance coming back to the U.S market and threatening Coinbase's market share, Coinbase has secretly sold out his competitor to provide narrative fuelling the Binance smear campaign.

Wallace also wrote about how Coinbase also had no quelms targeted President Trump in an effort to bring Binance down.

"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? This will all come out soon!"

Interestingly, CZ retweeted the post without confirming nor denying the post, seemingly throwing the ball to the readers to come to their own conclusion of what CZ could have meant from this move.

But Coinbase's Chief Legal Officer, Paul Grewal, responded to Wallace's post on social media, denying the rumours.

"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."

Allegations of Undermining Competition

Bloomberg, in one of its reports, also claimed that Binance developed the smart contract for USD1, the stablecoin issued by Trump's family business, World Liberty Financial.

The report also claimed that Zhao applied for a presidential pardon shortly after the USD1 was used in a $2 billion deal involving a UAE fund's investment in Binance.

It was also noted that over 90% of USD1 token remains in Binance wallets, potentially generating tens of millions in annual interest revenue.

Zhao responded to the piece, calling it a "hit piece", adding that the piece was filled with so many factual errors that he didn't know where to begin.

Zhao Seeking Presidential Pardon

Binance founder Changpeng "CZ" Zhao pleaded guilty to a felony charge in 2023 as part of a settlement with U.S. authorities.

After serving four months in prison, Zhao revealed in May that he is now pursuing a presidential pardon from Donald Trump — a move that could open the door for him to resume a leadership role in a U.S.-based crypto company.

Despite his legal troubles, Zhao has remained active in the blockchain space. In April, he announced that he had signed a memorandum of understanding (MOU) with Kyrgyzstan’s foreign investment agency, and would begin advising the Central Asian nation on crypto and blockchain regulatory frameworks.