Binance’s CZ May Sue Bloomberg Over Trump Stablecoin Claims

Changpeng Zhao (CZ), former CEO of Binance, is contemplating suing Bloomberg following the publication’s report linking Binance with a Trump-associated stablecoin.

Binance’s potential legal battle with Bloomberg highlights media accountability and misinformation in cryptocurrency. CZ denies involvement with the USD1 stablecoin.

The Alleged Association

The controversy arises from Bloomberg’s report alleging Binance’s association with USD1, a stablecoin linked to Trump initiatives. CZ refutes these claims, calling the report a “hit piece” and denying any ties to the stablecoin’s development or financial operations. As CZ stated, “Bloomberg just wrote another hit piece (sponsored by a competitor) containing so many factual errors I don’t even know where to begin. Might have to sue them again for defamation.”

Potential Legal Action

Changpeng Zhao expressed his intention to pursue legal action against Bloomberg for alleged defamation. The disputed Bloomberg article suggested Binance’s involvement in a $2 billion deal using USD1, yet CZ firmly stated Binance did not partake in the USD1 smart contract or revenue generation.

The report also mentioned that over 90% of USD1 tokens reside in Binance wallets, claims CZ disputes, mentioning no supporting evidence. This situation underlines challenges in distinguishing fact from speculation in the crypto industry.

The allegations from the Bloomberg report have caused unease among investors and traders. While CZ refutes these claims, no official reports from regulators or financial institutions substantiate the connection between Binance and USD1. This incident underscores the need for clear communication in cryptocurrency dealings.

Broader Implications

The potential legal ramifications of CZ’s lawsuit against Bloomberg could bring further scrutiny to crypto journalism. The accuracy of such reports is vital for maintaining market integrity and trust. Historical legal actions between Binance and Bloomberg show the ongoing tension between major crypto entities and the media.