On July 13, 2025, a Bloomberg article stirred controversy by alleging that Binance was backing the World Liberty Financial project, purportedly linked to former President Donald Trump, along with the stablecoin USD1. Speculation arose that Coinbase was the anonymous source behind the article, aiming to undermine its competitor’s reputation in the U.S. market.
Responses from Coinbase and Binance
Coinbase’s Chief Legal Officer, Paul Grewal, immediately took to platform X to respond:
“This is completely misleading information! Coinbase is not involved with this article. We do not attack competitors; we always support those who share our vision of expanding the crypto market.”
In response, Binance’s founder Changpeng Zhao (CZ) fired back:
“This is just FUD! Bloomberg has put out another misleading attack that could be funded by competitors. I don’t even know where to start to refute this. Perhaps we’ll sue them again for defamation!”
CZ denied the accusations that Binance holds $2 billion in USD1 and is seeking a pardon from Trump, calling the article “baseless” and “full of errors.”
Related: Bitcoin Could Reach $200,000 by the End of This Year
A Battle Beyond Exchanges
This incident highlights the fierce competition in the crypto industry, extending beyond market dynamics to media and political arenas. Coinbase is working to protect its transparent image, while Binance struggles to restore its reputation following previous legal troubles.
The situation not only exposes the conflict between these two giants but also raises significant questions about transparency and reputational risk in an increasingly politicized crypto market. Is this a warning of a new “game” where media and politics become sharper weapons than technology?
