A sudden flare‑up of rumors sent waves through the crypto world this week. At the center is a Bloomberg story linking Binance to the creation of USD1, a stablecoin backed by World Liberty Financial and supported by US President Donald Trump’s family. Coinbase top lawyer stepped forward to shut down talk that his firm helped feed the report.
Coinbase Denies Role In Bloomberg Story
According to Coinbase chief legal officer Paul Grewal, the exchange had no hand in the Bloomberg piece. He said on X that Coinbase “absolutely did not contribute to this story.”
He added that his team doesn’t target rivals and that anyone looking for the real source should keep digging. The whole thing is “pure misinformation”, Grewal said on X. Coinbase has long held that it has no interest in undercutting competitors.
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.
You should keep looking for an actual source. https://t.co/OoJIEVqntS
— paulgrewal.eth (@iampaulgrewal) July 13, 2025
World Liberty Financial rolled out USD1 just weeks ago. The stablecoin now has $2.20 billion in circulation. Binance holds about $2 billion of those coins as part of a $2 billion investment in its UAE sovereign fund.
Bloomberg reported that an insider claimed Binance coded the smart contract for USD1. Based on reports, this link is tied to founder Changpeng Zhao’s bid for a presidential pardon.
Allegations And Motives Clash
Crypto commentator Matt Wallace threw gasoline on the fire by suggesting Coinbase was the anonymous tipster. He argued that if Binance wins a pardon for Zhao, it could regain full strength in the US and challenge Coinbase’s growth.
🚨JUST IN: Evidence is emerging that COINBASE was the “anonymous” source behind the hit job on President Trump’s World Liberty Financial and Binance ‼️
Coinbase learned that a pardon for Binance’s CZ may be on the table and due to their industry high fees and poor customer…
— Matt Wallace (@MattWallace888) July 13, 2025
Lower trading fees and wider global reach are central to that idea. Wallace offered no proof, but his post has racked up more than 1 million views on X. Zhao then retweeted the allegation, driving more chatter without any clear nod of approval.
Binance founder and former CEO Changpeng Zhao. Photo: Eric Piermont/Agence France-Presse/Getty Images
Legal Threats And Next Steps
Binance founder Changpeng Zhao hit back hard. He blasted Bloomberg’s story as a “hit piece” and hinted that a competitor might have paid for it. He also reminded followers that he filed a lawsuit against Bloomberg in 2022 over false claims, forcing an apology. Now he’s weighing another defamation case.
Uncertainty remains over who really spoke to Bloomberg. Coinbase has denied involvement. Binance says its critics are at work. And the public is left waiting. Regulators could take an interest if the stablecoin allegations turn out to involve misleading statements or market manipulation. For now, both exchanges are sticking to their stories.
Featured image from HollaEx, chart from TradingView
