Coinbase has strongly denied allegations linking it to a Bloomberg report that ties Binance to a stablecoin project associated with U.S. President Donald Trump.
In a statement posted on X on July 13, Coinbase Chief Legal Officer Paul Grewal dismissed the rumor as “pure misinformation,” asserting that the company had no involvement in the article’s publication.
“We absolutely did not contribute to this story,”
Grewal emphasized, adding that Coinbase does not undermine competitors and instead supports all initiatives that promote the growth of the crypto industry.
His response followed claims from crypto influencer Matt Wallace, who alleged without evidence that Coinbase was the anonymous source behind Bloomberg’s reporting. Wallace suggested the motivation stemmed from Coinbase’s concern that Binance, currently limited in its U.S. operations, could regain market access if its former CEO, Changpeng Zhao, were granted a presidential pardon by Trump.
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.
You should keep looking for an actual source. https://t.co/OoJIEVqntS
— paulgrewal.eth (@iampaulgrewal) July 13, 2025
The controversy stems from a July 11 Bloomberg article that reported Binance had helped develop the USD1 stablecoin, issued by World Liberty Financial, a company with links to Trump. The report claimed that Binance was responsible for the token’s smart contract and played a role in a $2 billion investment into the stablecoin from a UAE-based fund. It also stated that over 90% of the USD1 supply remains in Binance wallets.
Adding to the drama, the article noted that Zhao is currently seeking a presidential pardon after pleading guilty in 2023 to violating anti-money-laundering laws. In response, Zhao dismissed the report as “FUD,” accused Bloomberg of publishing factual inaccuracies, and suggested the story was “sponsored by a competitor.” He also hinted at another possible defamation lawsuit, referencing a prior legal dispute with the outlet in 2024.
Amid the growing controversy, Zhao has also issued a new warning to the crypto community about a rise in phishing attacks. In a separate post on X, he urged users to exercise caution when connecting wallets online, warning that even trusted platforms are now being exploited with deceptive authorization prompts designed to steal assets.
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