Coinbase Denies Leak: Binance’s Trump Coin Saga Takes a Twist

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A tempest in the cryptoverse has been brewing, with rumors swirling around Binance‘s alleged involvement in the creation of USD1, a stablecoin backed by World Liberty Financial and supported by none other than the Trump family. Coinbase, however, has stepped forward to quash any speculation that they had a hand in feeding the Bloomberg story.

Coinbase Denies Role in Binance’s Trump Coin Saga

According to Coinbase’s chief legal officer, Paul Grewal, the exchange played no part in the Bloomberg piece. He stated on X that Coinbase “absolutely did not contribute to this story.”

Grewal added that his team does not target rivals and that anyone seeking the true source should keep digging. The whole thing, he said on X, is “pure misinformation.” Coinbase has long maintained that it has no interest in undermining 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.

— paulgrewal.eth (@iampaulgrewal) July 13, 25

World Liberty Financial unveiled USD1 just a few 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 fanned the flames 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. Lower trading fees and wider global reach are central to that idea. Wallace offered no proof, but his post has garnered more than 1 million views on X. Zhao then retweeted the allegation, fueling more chatter without any clear endorsement.

Legal Threats and Next Steps

Binance founder Changpeng Zhao struck back hard. He decried 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 considering another defamation case.

Uncertainty remains over who truly spoke to Bloomberg. Coinbase has denied involvement. Binance says its detractors are at work. And the public is left waiting. Regulators could take an interest if the stablecoin allegations involve misleading statements or market manipulation. For now, both exchanges are sticking to their stories.

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2025-07-14 18:14