Coinbase Denies Link to Bloomberg Report on Trump-Backed Stablecoin

Highlights:

• Coinbase denied any role in the Bloomberg story that linked Binance to the Trump-backed stablecoin USD1 project.
• Zhao criticized the report and hinted that he will take action against the company.
• Wallace claimed Coinbase leaked the story to block the return of Binance to the US.

Coinbase has rejected claims linking the exchange to a Bloomberg report involving Binance and a Trump-backed stablecoin project. Paul Grewal, the chief legal officer of Coinbase, responded directly on X and described the rumor as false. He stated that Coinbase did not contribute to the article and would never take part in efforts to harm 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

Grewal emphasized that the company supports all platforms working to expand the crypto industry. His response followed growing speculation on social media regarding the source of the Bloomberg report.

The Bloomberg article, published on July 11, alleged that Binance helped create the smart contract for the USD1 stablecoin. The token was issued by World Liberty Financial, a project reportedly supported by the Trump family. The report alleged that USD1 participated in a $2 billion investment in Binance by a UAE-based fund. It also added that the majority of tokens in circulation are on wallets linked with Binance. Although the report attributed its information to unidentified sources and blockchain, there was no connection to Coinbase.

Wallace alleged but did not provide evidence that Coinbase was the source of information in the Bloomberg story. He claimed that the exchange was attempting to prevent Binance reentry into the U.S. market after going after its ex-CEO. Grewal quickly replied and made it clear that Coinbase had no part in the article.

🚨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

Trump-Backed Stablecoin Story Sparks Online Reactions

The post from Wallace quickly gained attention online and attracted more than one million views on X. He suggested that Coinbase feared losing market share if Binance re-entered the U.S. through a possible presidential pardon for its founder. Wallace pointed out that Binance offers lower trading fees and serves a global user base. He also linked the story to political motivations, claiming that the move targeted the president’s support for the project.

The founder of Binance, Changpeng Zhao, also contributed to the debate by re-sharing the claims made by Wallace. His response cast doubt on his possible agreement with the accusations. Zhao soon issued his own statement condemning the Bloomberg article. He described it as inaccurate and filled with misleading claims. He further stated that the story aimed to harm Binance’s image and hinted at taking legal steps against the publisher.

4. FUD. 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. https://t.co/FevGMArHj8

— CZ 🔶 BNB (@cz_binance) July 11, 2025

Crypto Firms Push Back as Tensions Rise

The Bloomberg article did not include any comment from World Liberty Financial or the White House. Although much attention was paid to the story, there is still no confirmation of the connection between Coinbase and the report.

Zhao reminded his audience that he had previously sued Bloomberg in 2022 and forced an apology. In his recent post, he repeated his belief that the article was sponsored by a competitor. He referred to the content as “FUD,” a term often used in the crypto world to describe false and harmful information. Meanwhile, CZ recently met with the founders of WLFI in Dubai, where they discussed the growing adoption of crypto in different countries.