Coinbase Denies Bombshell Claim it Fueled Trump-Binance Hit Piece

Tensions in the crypto sector escalated over the weekend following allegations that Coinbase was the unnamed source behind a Bloomberg report scrutinizing Donald Trump’s crypto project, World Liberty Financial, and Binance.

Coinbase exec, however, has denied the allegations.

Allegations Stir Crypto Rivalries

Crypto commentator Matt Wallace claimed on X that Coinbase executives were concerned that a potential pardon for Binance’s former CEO Changpeng ‘CZ’ Zhao could clear the way for his return. He alleged they attempted to undermine the crypto exchange out of fear that its re-entry into the US market would threaten Coinbase’s market share.

Wallace described Coinbase’s alleged targeting of Trump as “anti-American,” and added that the company’s leadership viewed Binance’s legal return as a direct threat to their business. The post was later reshared by Zhao, who neither confirmed nor denied the claims but indicated that he may consider legal action against Bloomberg for defamation.

Bloomberg’s report had detailed Binance’s involvement in creating the smart contract for USD1, a stablecoin issued by World Liberty Financial, while linking Zhao to a request for a presidential pardon shortly after the token featured in a multibillion-dollar UAE investment deal with Binance. The report further stated that a significant share of USD1 tokens remains in Binance wallets, which suggests potential interest earnings for the exchange.

Coinbase’s chief legal officer, Paul Grewal, responded directly to Wallace’s accusations on X and called them “pure misinformation.” He also asserted that Coinbase had no involvement in providing information to Bloomberg.

“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.”

“Standard Collaboration, Not Corruption”

The episode has drawn significant attention from industry players. Blockchain advisor Anndy Lian also criticized Bloomberg’s report on Binance and Trump. In a post on X, Lian noted the article relied on anonymous sources without concrete evidence of payments or explicit coordination between Trump and CZ.

He argued the piece exploited a national tragedy for political narratives and lacked a factual basis. He also added that the crypto exchange’s activities align with industry norms and that no direct evidence links Trump’s business interests to policy decisions.

CZ had stepped down as Binance’s CEO last year following legal settlements with US authorities, and has kept a relatively low profile ever since. In May, CZ confirmed applying for a presidential pardon from Trump after reports linked him to such efforts.

Citing Trump’s past BitMEX pardons, the Binance co-founder said that he’s the only person jailed solely for a BSA violation. Despite seeking clemency, CZ said that he won’t return to Binance leadership.