Important Highlights:
- After labeling Bloomberg’s stablecoin report “defamatory,” CZ has threatened to file a lawsuit.
- He points to a past Bloomberg retraction over false Binance claims.
- USD1 stablecoin’s political and financial ties are under intense scrutiny.
CZ Threatens Lawsuit Over Stablecoin Report
Changpeng “CZ” Zhao, the well-known co-founder of Binance, is back in the headlines and not for launching a new crypto product.
Instead, he’s planning to take legal action against Bloomberg because of a report linking him to a Trump-supported stablecoin known as USD1.
The article, published recently by Bloomberg, claims CZ was involved in creating the smart contract behind USD1.
A stablecoin issued by World Liberty Financial, a company reportedly linked to Donald Trump. But CZ is pushing back hard.
CZ Responds: “So Many Errors, I Don’t Know Where to Begin”
In a fiery post on X (formerly Twitter), CZ dismissed the Bloomberg piece as a “hit piece” that was possibly “sponsored by a competitor.”
He asserted that the article was packed with lies and inaccuracies, and he mentioned that he “might have to take legal action against them again for defamation.”
So, what’s got CZ this riled up?
Well, Bloomberg claimed that Binance wrote the original code for the USD1 stablecoin and that CZ
applied for a Trump presidential pardon shortly after USD1 was used in a $2 billion investment deal involving a UAE-based fund and Binance.
On top of that, the report said more than 90% of USD1’s tokens are still sitting in Binance wallets potentially raking in tens of millions in interest revenue.
Bloomberg’s Track Record: Not the First Clash
If this sounds familiar, that’s because it kind of is.
Back in July 2024, Bloomberg’s Chinese language edition had to issue a public apology and retract a 2022 article that accused Binance of running a Ponzi scheme.
They admitted the claim was “false and baseless,” and instead of paying damages, Bloomberg agreed to make a charitable donation.
CZ didn’t forget. In his latest post, he shared a link to that very apology, reminding people that this isn’t the first time Bloomberg has made serious and apparently false accusations involving Binance and stablecoins.
Politics, Stablecoins, and the Trump Factor
World Liberty Financial, reportedly linked to Donald Trump, launched the stablecoin USD1.
Trump stirred controversy by launching his own memecoin and collecting crypto donations for his campaign.
Because of all this, stablecoins have become a hot topic in Washington.
The House is currently reviewing three major crypto bills, including the GENIUS Act a bipartisan bill focused on regulating payment stablecoins.
Despite early resistance from Democrats, the bill passed the Senate and is now moving forward.
What About CZ’s Legal History?
CZ’s hands aren’t entirely clean, to be fair.
He convicted a hooliganism in 2023 on charges of hooliganism and served a four month prison sentence as an agreement with US authorities.
In May 2025, he openly admitted to seeking a presidential pardon from Trump, which could potentially allow him to return to a management role in a U.S. based crypto company.
But here’s the key difference: CZ says his pardon request had nothing to do with the USD1 stablecoin or any shady deals. He’s calling the link drawn by Bloomberg “pure fiction.”
Another Day, Another Media Feud
And just to keep things spicy this isn’t CZ’s only fight with the press.
According to a Wall Street Journal story from April, he consented to testify against Justin Sun, the founder of Tron.
CZ hit back, writing, “WSJ is really TRYING here… They seem to have forgotten who went to prison and who didn’t.”
He even went so far as to suggest someone may have paid WSJ employees to “smear” his name.
What Will Happen to CZ and Stablecoins Next?
To be honest, nobody knows. CZ might follow through on his lawsuit, or Bloomberg might double down on their claims.
What’s certain is this: stablecoins are now at the center of an increasingly messy mix of crypto, politics, and media drama.
With more regulation on the horizon and Trump’s crypto influence growing, the world is watching how these battles unfold and where the truth really lies.