Is CZ Suing Bloomberg for the USD1 Misinformation?

The intersection of cryptocurrency, politics, and media scrutiny rarely passes without drama. In July 2025, Changpeng Zhao—better known as CZ, the founder and former CEO of Binance—stood at the center of a media storm. 

Bloomberg, a global financial news outlet, published a report alleging that Binance played a pivotal role in developing the Trump-backed USD1 stablecoin, raising questions about political ties and financial interests. 

CZ’s response was swift and emphatic: he dismissed the report as “another hit piece” and threatened to sue Bloomberg for defamation, marking a new chapter in the ongoing saga between powerful crypto figures and the traditional press.

This episode is more than a clash of personalities. It highlights the fragile boundaries between reporting, reputation, and the legal risks that come with high-stakes allegations in the digital asset world.

 As the crypto industry matures, disputes like this test both the credibility of media institutions and the resilience of industry leaders.

The Bloomberg Report: Allegations and Reactions

The controversy began with Bloomberg’s investigative report, which claimed that Binance had developed the original smart contract code for USD1, a stablecoin issued by World Liberty Financial—a company with close ties to former U.S. President Donald Trump. 

The report further alleged that over 90% of USD1’s supply remained in Binance-controlled wallets, potentially generating tens of millions in annual interest income for the exchange. 

Bloomberg also suggested that CZ sought a presidential pardon from Trump after a $2 billion investment involving USD1 and a UAE-based fund.

Bloomberg’s narrative relied on anonymous sources and circumstantial connections, painting a picture of deep entanglement between Binance, the Trump-affiliated stablecoin, and global political interests. 

Critics of the report, including CZ himself, argued that the story lacked direct evidence and leaned heavily on implication rather than substantiated fact.

CZ’s reaction was immediate and public. On social media, he called the article “another sponsored attack full of lies” and accused Bloomberg of spreading misinformation, or “FUD” (fear, uncertainty, and doubt).

He signaled his intent to pursue legal action, referencing his previous successful lawsuit against Bloomberg over a 2022 article that the outlet later retracted and apologized for.

Read Also: Is CZ Connected to USD1? Binance Founder Responds to Controversy

Binance, USD1, and the Trump Connection: What Do We Know?

At the heart of the dispute is USD1, a stablecoin launched by World Liberty Financial in May 2025. 

The token quickly attracted attention due to its association with the Trump family and its use in a high-profile $2 billion investment in Binance by an Abu Dhabi-based sovereign wealth fund. 

Bloomberg’s report claimed that Binance not only facilitated the transaction but also wrote the core code for USD1, placing the exchange at the center of the stablecoin’s technical and financial ecosystem.

The allegations raised several key questions:

• Did Binance actually develop the USD1 smart contract?

  Binance and CZ have categorically denied this, calling the claim baseless and unsupported by evidence.
   

• How much USD1 is held in Binance wallets?

  Reports suggest that a significant portion—over 90%—of USD1’s supply resides in Binance-controlled wallets, but the reasons for this concentration remain disputed. 

  Critics argue it could be for liquidity or custodial purposes, not necessarily evidence of ownership or control.
   

• Was there a direct link between the stablecoin transaction and CZ’s request for a presidential pardon?

  Bloomberg implied a connection but did not provide documentation or official statements to confirm the relationship. 

  CZ has acknowledged applying for a pardon but insists it was through the standard legal process, with no direct contact with Trump.
   

The lack of concrete evidence in the report has fueled skepticism among crypto industry observers, many of whom view the story as speculative and potentially damaging without substantiation.

Read Also: How to Buy USD1 on Bitrue Alpha: A Step-by-Step Guide

Legal History: CZ, Bloomberg, and Defamation in Crypto

This is not the first time CZ and Bloomberg have clashed in court. In 2022, Bloomberg published an article in its Chinese edition accusing Binance of operating a Ponzi scheme. 

CZ sued for defamation, and the case concluded with Bloomberg issuing a formal apology and making a charitable donation in lieu of damages. The outlet also pledged not to repeat similar allegations in the future.

CZ’s threat to sue Bloomberg again over the USD1 story is rooted in this history. He argues that Bloomberg has a pattern of publishing misleading or defamatory content about him and Binance.

Legal experts note that defamation suits involving media coverage of public figures are complex and hinge on the ability to prove actual malice or reckless disregard for the truth.

For CZ, the stakes are high. A successful lawsuit could reinforce his reputation and deter future negative coverage. 

For Bloomberg, defending its reporting is a matter of journalistic integrity. The outcome could set a precedent for how crypto leaders respond to investigative journalism in the future.

Read Also: Mubarak Meme Coin Skyrockets After Binance CEO CZ’s Unexpected Investment

The Crypto Community Reacts: Support, Skepticism, and Industry Tensions

The response from the crypto community has been largely supportive of CZ. 

Many industry participants view the Bloomberg report as an example of mainstream media misunderstanding or misrepresenting the complexities of blockchain technology and stablecoin operations. 

Social media platforms and forums have seen a groundswell of calls for CZ to proceed with legal action, with users expressing frustration at what they perceive as unfair targeting of crypto innovators.

However, not everyone is convinced of CZ’s innocence or Bloomberg’s malice. Some observers point out that the concentration of USD1 in Binance wallets and the timing of the pardon request raise legitimate questions that deserve scrutiny. 

Others caution against dismissing investigative journalism outright, emphasizing the need for transparency and accountability in an industry often criticized for its opacity.

The episode has also reignited debates about the role of stablecoins in global finance, the influence of political figures in crypto projects, and the challenges of regulating a rapidly evolving sector. 

With new legislation on stablecoins advancing in the U.S. Congress, the stakes for accurate reporting and responsible leadership have never been higher.

Conclusion

The dispute between CZ and Bloomberg over the USD1 stablecoin report encapsulates the tensions at the intersection of crypto, politics, and media. 

While Bloomberg’s report raised provocative questions about Binance’s role in the Trump-linked stablecoin, CZ’s categorical denials and threat of legal action underscore the challenges of reporting on opaque and high-stakes financial ecosystems. 

The absence of direct evidence in Bloomberg’s story has led many in the crypto community to side with CZ, but the controversy also highlights the ongoing need for transparency, accountability, and careful scrutiny in both journalism and blockchain innovation.

As the legal and reputational battle unfolds, the crypto world—and its observers—will be watching closely to see whether this latest clash leads to meaningful change or becomes another footnote in the turbulent history of digital finance.

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FAQ

Is CZ actually suing Bloomberg over the USD1 stablecoin report?

As of July 2025, CZ has publicly threatened to sue Bloomberg for defamation over the USD1 report but has not yet filed a new lawsuit. He previously won a defamation case against Bloomberg in 2024.

What did Bloomberg allege about Binance and USD1?

 Bloomberg claimed that Binance developed the smart contract for USD1, held the majority of its supply, and that CZ sought a presidential pardon after a major transaction involving the stablecoin. CZ denies all these allegations.

What is USD1, and why is it controversial?

 USD1 is a stablecoin launched by World Liberty Financial, a company with ties to Donald Trump. Its association with Binance and its use in a large investment transaction have raised questions about political and financial entanglements.

Has the crypto community supported CZ in this dispute?

 Most crypto industry voices have rallied behind CZ, criticizing Bloomberg’s report as misleading and calling for greater accuracy in media coverage of blockchain topics.

What are the broader implications of this controversy?

 The episode highlights the risks of misinformation, the importance of journalistic integrity, and the need for clear communication between crypto leaders and the press. It also underscores the growing scrutiny of stablecoins and political influence in digital asset markets.