Is CZ Connected to USD1? Binance Founder Responds to Controversy

2025-07-14

Recently, Changpeng Zhao, also known as CZ, found himself at the center of a swirling controversy involving USD1, a stablecoin linked to World Liberty Financial (WLFI), a crypto project endorsed by Donald Trump.

The question circulating online is, is CZ connected to USD1? A recent Bloomberg Law report stirred up speculation, claiming that Binance played a critical role in building USD1’s infrastructure, right around the time CZ was allegedly seeking a presidential pardon.

So, what’s really going on? Let’s dive deeper into the details behind this headline-making story. Read this article to find out more!

Allegation that CZ is Connected to USD1

According to the report by Bloomberg, Binance was allegedly behind the smart contract code for USD1, the Trump-backed stablecoin that launched in March 2025.

The USD1 token has since surged in popularity, becoming the fifth-largest stablecoin by market cap, with MGX Abu Dhabi pouring in $2 billion, reportedly preferring USD1 over other major stablecoins like USDT or USDC.

Beyond development, the report claims Binance promoted USD1 to its 275 million users, further fueling its rapid rise in adoption.

However, it remains unclear whether CZ or Binance were financially compensated for this work, or if any agreements existed between World Liberty Financial and Binance.

The timing of these revelations is crucial, they came shortly after CZ publicly confirmed he had filed a pardon request with President Trump, following his 2023 guilty plea and $4.3 billion fine for violating U.S. anti-money laundering laws.

CZ's Responds to Controversy

In response to the allegations, CZ has categorically denied any connection between his pardon request and the development of the USD1 token.

CZ called the rumors “baseless”, stating that Binance’s involvement in building or promoting the stablecoin had nothing to do with his legal situation or political strategies.

While CZ initially denied even submitting a pardon request, he later confirmed it during a public interview, adding fuel to the speculative fire. However, neither Binance nor WLFI has issued detailed clarifications about any contracts or partnerships.

Despite the controversy, the market hasn’t panicked. BNB remains relatively stable at $686, with minor on-chain volume drops, suggesting that investors are watching but not overreacting, at least not yet.

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Points Behind the Controversy of CZ and USD1

To know deeper about the controversy, take a look at the key points behind the controversy of CZ and USD1:

1. Bloomberg’s Claims

- Binance allegedly developed the smart contract code for USD1.

- Binance promoted USD1 after its March 2025 launch.

- Unclear if Binance or CZ were paid for their contributions.

2. CZ’s Legal History

- Pleaded guilty in 2023 for AML violations.

- Fined $4.3 billion and sentenced to four months in prison.

- Stepped down as CEO of Binance in the aftermath.

3. Pardon Request Timeline

- CZ initially denied applying for a pardon.

- Later admitted the application was real.

- Denies any link between USD1 and the pardon request.

4. Market Reaction

- BNB price stayed stable.

- On-chain activity dipped slightly but no massive sell-offs.

- Suggested crypto markets are in “wait-and-see” mode.

Conclusion: Is CZ Connected to USD1

While Binance may have played a technical role in USD1’s development, CZ has denied any direct connection, especially regarding motives tied to a presidential pardon.

The facts are still murky, and without formal disclosures from Binance or WLFI, the full picture remains incomplete.

That said, the controversy underscores how deeply regulatory and political narratives can influence public trust in the crypto world.

Whether CZ is ultimately proven to have been involved for strategic reasons or not, the story shows how interconnected leadership, regulation, and market dynamics have become in the next era of crypto finance.

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FAQ

Is CZ connected to USD1?

CZ has denied any direct connection between himself and USD1’s development or promotion. However, a Bloomberg report suggests Binance played a technical role.

What is the WLFI coin worth?

As of now, WLFI has not been listed on public exchanges, and pricing is based on presale valuations, ranging from $0.015 to $0.05.

Will WLFI ever be tradeable?

WLFI is expected to be tradeable once the presale concludes and the project is listed on crypto exchanges.

What is the price prediction for WLFI in 2025?

Estimates vary widely. Some forecasts suggest prices over $1,500, while others predict minimal movement depending on the platform’s utility and public interest.