Is Coinbase Sabotaging WLFI? Examining the Allegations

The crypto industry is no stranger to controversy, but recent allegations have sparked a particularly sharp debate. Claims have emerged suggesting that Coinbase—one of the largest U.S.-based crypto exchanges—may be behind a coordinated smear campaign targeting World Liberty Financial (WLFI) and Binance. This has ignited conversations around corporate rivalry, political interests, and strategic influence in the Web3 space.

At the center of this firestorm is WLFI, a newer digital finance project reportedly connected to the Trump family, and Binance, a global heavyweight banned from operating in the U.S. since 2023. The allegations imply that Coinbase, in an effort to maintain its dominant U.S. position, could be undermining potential competition through anonymous media briefings. While such claims are explosive, the evidence remains speculative. Let’s break down the story, the key players, and what’s actually known.

Allegations Against Coinbase: Rivalry or Misinformation?

The accusations surfaced on X (formerly Twitter), where a prominent user claimed that Coinbase was the unnamed source feeding negative reports to media outlets about WLFI and Binance. This so-called “hit job” is framed as both a strategic business move and a politically motivated effort, given WLFI’s rumored links to Trump-aligned figures.

According to the post, Coinbase allegedly fears the return of Binance to the U.S. market, particularly if its founder, Changpeng Zhao (CZ), receives a presidential pardon. If true, Binance’s re-entry could disrupt Coinbase’s standing, and the timing of the accusations raises questions about broader strategic maneuvering. However, these claims remain unsupported by direct, verifiable evidence.

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

WLFI, Binance, and the Politics of Crypto

World Liberty Financial has gained attention for more than just its technology. Speculation around its development—including claims that Binance authored its stablecoin infrastructure (USD1)—has fueled narratives that tie the platform to global crypto powerhouses and U.S. political figures.

The suggestion that WLFI could be a joint project between Binance and Trump-affiliated parties has only added fuel to theories of Coinbase’s alleged motive. If WLFI does indeed present a political and competitive threat, some observers argue that Coinbase might seek to influence public and regulatory perception through indirect means. Still, no documented proof substantiates such involvement.

Coinbase’s Official Response: Firm Denial

Paul Grewal, Coinbase’s Chief Legal Officer, responded swiftly and clearly. He labeled the claims “pure misinformation,” stating that Coinbase did not contribute to the story in question and does not attack competitors.

“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.”

Despite being tagged in the original discussion, Binance’s CZ has not addressed the allegations directly. His silence has left room for continued speculation, but no formal accusation or confirmation has been issued from Binance or WLFI’s leadership.

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

The Bigger Picture: Tensions and Speculation in Web3

This incident reflects a deeper tension within the crypto space. As regulatory scrutiny increases and political interests intersect with blockchain projects, speculation can escalate quickly—especially on social media. The lack of concrete evidence in this case suggests that much of the controversy may be rooted in rivalry and conjecture, rather than fact.

However, it also underscores the vulnerability of the industry to narratives that mix business competition with political intrigue. Whether or not Coinbase is involved in any form of sabotage, the conversation around WLFI illustrates the increasingly complex dynamics of crypto’s intersection with policy, reputation, and influence.

Conclusion

For now, the allegations against Coinbase remain in the realm of speculation. No hard evidence has been brought forward, and official denials have been issued. While the story reflects growing unease about the power struggles within the crypto world, it also serves as a reminder of the importance of verifying claims—especially in a fast-moving, high-stakes space like Web3.

The broader implication is clear: as blockchain continues to intersect with global finance and politics, the lines between competition, influence, and transparency will only grow more complex.

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FAQs

What is WLFI (World Liberty Financial)?

WLFI is a blockchain-based financial platform rumored to be connected to members of the Trump family. It has been gaining attention for its stablecoin (USD1) and perceived political affiliations.

Why was Binance banned in the U.S.?

Binance was banned in the U.S. due to regulatory concerns and compliance violations. The SEC and other agencies cited issues with KYC, money laundering, and unregistered securities.

What did Coinbase say about the WLFI allegations?

Coinbase’s Chief Legal Officer Paul Grewal denied the claims, calling them misinformation. He stated Coinbase does not attack competitors and was not involved in any media briefings regarding WLFI.

Is Binance trying to return to the U.S. market?

There are speculations that Binance may re-enter the U.S. market, possibly through legal restructuring or changes in leadership. A pardon for its founder, CZ, could accelerate this path.

How are politics influencing the crypto industry?

As crypto becomes more integrated with traditional finance, political affiliations and government regulations are increasingly shaping the direction, trust, and growth of major blockchain projects.