Is Coinbase Sabotaging USD1 from Binance?

As competition intensifies in the crypto industry, tensions between leading exchanges are increasingly spilling into public view. One of the latest controversies involves Coinbase and Binance, sparked by allegations that Coinbase is behind a media campaign targeting USD1—a stablecoin linked to Binance and World Liberty Financial (WLFI), a project reportedly connected to former President Donald Trump.

At the heart of the claims is a report from Bloomberg suggesting Binance had a significant role in developing the USD1 smart contract. The situation has escalated with accusations that Coinbase leaked damaging information to the press in an effort to sabotage both Binance and WLFI. While the accusations have gained attention, especially across social media, no concrete evidence has emerged to support the claim.

Coinbase vs. Binance: Where the Allegations Began

The accusation first came from crypto influencer Matt Wallace, who suggested that Coinbase was the anonymous source behind Bloomberg’s reporting. According to Wallace, the motive is rooted in fear—specifically, that Binance founder Changpeng Zhao (CZ) could return to the U.S. crypto market if granted a pardon by Trump, threatening Coinbase’s dominance.

Wallace alleged this leak was a strategic move by Coinbase to discredit USD1 and sow doubt about Binance’s intentions. CZ retweeted Wallace’s thread, lending visibility but stopping short of officially endorsing the claim.

Read more: WLFI Price Prediction and Forecast 2025, 2026, 2027–2030

The USD1 Controversy: Key Allegations and Denials

The controversy stems from multiple claims:

• Binance allegedly helped develop the smart contract code for USD1.
  
   
• Abu Dhabi-based MGX was said to have invested $2 billion via USD1, increasing speculation about political and financial motives.
  
   
• The timing of CZ’s presidential pardon application led some to believe in a quid pro quo, linking Binance’s involvement in USD1 to Trump.
  
   

Coinbase’s Chief Legal Officer, Paul Grewal, issued a clear and direct response:

“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.”

Binance also denied any substantial cooperation with WLFI beyond standard business engagement and called the entire narrative a political distortion.

Analyzing the Evidence (or Lack Thereof)

At this stage, there is no publicly verifiable evidence linking Coinbase to any media leaks or intentional sabotage of USD1 or Binance. The allegations, while high-profile, rest solely on social media posts and speculation.

Notably, no internal documents, leaked communications, or on-chain data have surfaced to confirm Coinbase’s involvement. Both major parties—Coinbase and Binance—have categorically denied the claims, underscoring the absence of hard proof.

Read more: US Economy Surplus Sparks Crypto Momentum: How WLFI and USD1 Fit Into the Bigger Picture

The Bigger Picture: Competition and Politics Collide

This situation underscores the fragile relationship between competition and trust in the crypto industry. The idea that one major exchange might attempt to undermine another via press manipulation reflects the rising politicization and rivalry in Web3.

The allegations also highlight how external political dynamics—such as Trump’s potential involvement and CZ’s legal status—can stir controversy and shape market narratives, even in the absence of verifiable facts.

Conclusion

The claim that Coinbase is sabotaging USD1 through a media hit job remains speculative and unsubstantiated. While the accusations have drawn attention due to the personalities and platforms involved, neither solid evidence nor confirmations have been presented. Both Coinbase and Binance have publicly denied the narrative, emphasizing transparency and mutual non-aggression.

As of now, the situation appears more reflective of intensifying market rivalry and political entanglements than confirmed misconduct. Caution remains essential when interpreting such claims in a highly volatile and narrative-driven crypto space.

Read more: 

WLFI Voting to Make WLFI Tradeable is Live Now!

World Liberty Financial Team: Who’s Behind WLFI’s Rise in DeFi?

Trump's WLFI Token Sales Revealed

DWF Labs Invests $25M in WLFI Tokens! Opens Up Opportunities for Global Adoption

FAQs

Is there evidence that Coinbase leaked information about USD1?

No confirmed evidence has been presented. The claim is based on speculation by a crypto influencer and has been denied by Coinbase.

What is USD1 and who backs it?

USD1 is a stablecoin linked to World Liberty Financial (WLFI), a project reportedly backed by figures close to Donald Trump.

Did Binance help develop USD1?

According to Bloomberg, Binance may have assisted in USD1’s smart contract development, but Binance denies any improper involvement.

Why is CZ seeking a pardon from Trump?

CZ confirmed applying for a presidential pardon but denied that it was related to USD1 or any arrangement with WLFI or Trump.

Has Coinbase targeted Binance in the past?

There is no public history or proof of Coinbase targeting Binance via leaks or media manipulation. The company has stated it does not attack competitors.