Coinbase Denies Bloomberg Source Claims in Binance Trump Crypto Investigation
by Maisie Morrison · BlockonomiTLDR
Table of Contents
- Coinbase denied being an anonymous source in a Bloomberg investigation about Binance’s involvement with Trump-affiliated World Liberty Financial and USD1 stablecoin
- Binance founder CZ called the Bloomberg report a “hit piece” with factual errors and threatened legal action for defamation
- Online commentators speculated Coinbase leaked information to undermine Binance’s U.S. market position
- Bloomberg’s report showed Binance wallets holding over $2 billion in USD1 and mentioned CZ seeking a presidential pardon
- Both exchanges rejected involvement in any smear campaign against each other
Coinbase and Binance, two of the world’s largest cryptocurrency exchanges, found themselves in a public dispute on July 13. The conflict began after a Bloomberg investigation examined Binance’s connection to World Liberty Financial and the USD1 stablecoin project linked to President Donald Trump.
Coinbase’s chief legal officer Paul Grewal took to social media platform X to deny allegations. He stated the company “absolutely did not contribute to this story” and emphasized that Coinbase doesn’t attack competitors.
The denial came after online speculation suggested Coinbase acted as an anonymous source for the Bloomberg report. Crypto influencers and commentators accused Coinbase of trying to damage Binance’s reputation.
Ian Miles Cheong posted on social media that he believed “a competitor like Coinbase is behind this.” He accused them of using “the Trump angle” to attack Binance.
Bloomberg Report Details
The Bloomberg investigation revealed several key details about Binance’s involvement with USD1. The report showed Binance wallets holding over $2 billion worth of the stablecoin.
It also discussed Binance founder Changpeng Zhao’s efforts to obtain a presidential pardon from Trump. The article outlined Binance’s behind-the-scenes role in building and promoting USD1.
Zhao responded strongly to the Bloomberg report on social media. He called it “FUD” and a “hit piece sponsored by a competitor.”
The former Binance CEO claimed the article contained “so many factual errors I don’t even know where to begin.” He also suggested he might sue Bloomberg for defamation.
Wall Street Mav defended Binance on social media, noting they assist with early-stage projects regularly. The commentator accused the media of twisting normal business activities into controversy.
Political Implications
The timing of these accusations is particularly sensitive. CZ is currently seeking a presidential pardon from Donald Trump.
A successful pardon could allow him to resume a leadership role in the U.S. crypto market. This potential return is viewed by some as a threat to Coinbase’s position.
Coinbase currently holds a leading position in the U.S. cryptocurrency exchange market. Binance’s return could challenge this dominance.
Despite regulatory challenges, Binance maintains its position as the world’s largest crypto exchange globally. The company continues to hold substantial influence in international markets.
The Bloomberg report did not identify any sources from Coinbase in its investigation. However, online speculation persisted about potential anonymous sources.
Both companies have now publicly rejected any involvement in campaigns against each other. The episode demonstrates how competition between crypto exchanges extends beyond trading platforms into public and political spheres.