A wild rumor is spreading through the crypto world, and Coinbase is setting the record straight. A Bloomberg article connected Binance to USD1, a stablecoin backed by World Liberty Financial and linked to the Trump family. Coinbase vehemently denies any involvement.
Coinbase’s Denial
Coinbase’s chief legal officer, Paul Grewal, took to X (formerly Twitter) to call the Bloomberg report “pure misinformation.” He stated unequivocally that Coinbase played no part in the story and doesn’t target competitors. He encouraged people to keep searching for the real source of the leak.
The USD1 Stablecoin and Binance’s Involvement
USD1, a relatively new stablecoin with $2.2 billion in circulation, has Binance holding around $2 billion worth as part of a larger investment. The Bloomberg article claimed an insider source said Binance coded USD1’s smart contract. This has fueled speculation, particularly given Binance founder Changpeng Zhao’s (CZ) pursuit of a presidential pardon.
Accusations Fly: Coinbase in the Crosshairs?
Crypto commentator Matt Wallace added fuel to the fire by suggesting Coinbase was the anonymous source for the Bloomberg story. He theorized that if Binance secured a pardon for CZ, it could significantly challenge Coinbase’s market position in the US. Wallace’s post, which lacked evidence, garnered over 1 million views on X and was even retweeted by Zhao himself.
Binance’s Response and Legal Action
CZ responded angrily, calling the Bloomberg article a “hit piece” and implying a competitor paid for it. He also reminded everyone of his past lawsuit against Bloomberg, which resulted in an apology, and hinted at another defamation suit.
The Mystery Remains
So, who leaked the information to Bloomberg? Coinbase denies it, Binance points fingers, and the truth remains elusive. Regulatory bodies might step in if the allegations about USD1 involve misrepresentation or market manipulation. For now, both exchanges are sticking to their stories, leaving the crypto community in suspense.