Changpeng Zhao’s Legal Battle with Bloomberg: A Deep Dive
Our editorial content remains trustworthy, having been meticulously reviewed by leading industry experts and experienced editors. Here, we delve into the ongoing legal issues involving Binance’s co-founder and Bloomberg, focusing on defamation claims.
Changpeng Zhao Challenges Bloomberg’s Allegations
In a recent turn of events, Changpeng “CZ” Zhao, co-founder and former CEO of Binance, has dismissed allegations made by Bloomberg concerning his involvement with a stablecoin developed by World Liberty Financial (WLF). This entity is reportedly linked to United States President Donald Trump. Zhao has accused Bloomberg of defamation and is prepared to take legal action against the publication, marking the second such instance within three years.
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Binance’s Alleged Involvement
Bloomberg’s report, dated July 11, alleged that Binance, the world’s largest cryptocurrency exchange, had a hand in developing the smart contract code for the WLF stablecoin, USD1. The report further suggested that USD1 was implicated in a significant $2-billion investment deal involving a firm based in Abu Dhabi.
Zhao’s Legal and Political Maneuvers
Having pleaded guilty to a felony as part of a settlement with the U.S. Department of Justice, CZ is reportedly seeking a presidential pardon from Trump. Bloomberg insinuated that this pardon request was linked to Binance’s alleged involvement in a major transaction utilizing WLF’s stablecoin, suggesting a potential conflict of interest.
Response from Zhao
Zhao, through his social media platform, expressed his discontent with the Bloomberg article, labeling it as another baseless attack possibly sponsored by competitors. He hinted at a defamation lawsuit, reminiscent of a previous legal confrontation with Bloomberg, which concluded with an apology and a donation from the publication to a Special Education Foundation.
Is Changpeng Zhao Under Attack?
Bloomberg is not the only media outlet to have scrutinized CZ recently. In May, The Wall Street Journal published a piece alleging Zhao’s involvement in facilitating introductions for the Trump family related to World Liberty Financial’s international activities. CZ refuted these claims, asserting that neither he nor Binance had any role in such arrangements.
Zhao believes these media narratives are part of a broader scheme targeting him and the cryptocurrency industry, driven by forces resistant to the digital asset sector’s growth in the U.S.
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