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Warning From Binance Founder Changpeng Zhao: "They Are Spreading FUD"
Binance founder and former CEO Changpeng "CZ" Zhao has strongly responded to a Bloomberg article accusing him of being involved in a stablecoin project backed by Trump. Zhao described the article as "FUD" ( spreading fear, uncertainty, and doubt) and stated that he may sue for defamation. "I may have to file a defamation lawsuit again," CZ said on the social media platform X. "Another smear campaign, supported by competitors, with so much misinformation that I don't even know where to start." A report from Bloomberg published yesterday accused Binance of writing smart contract code for the stablecoin USD1, issued by World Liberty Financial, a group affiliated with the Trump family. The article also accused Zhao of applying for a presidential pardon after this cryptocurrency was used in a $2 billion investment deal in the UAE. According to the information in the report, over 90% of the USD1 supply is currently being held in Binance wallets, and it is believed that this could generate tens of millions of dollars in interest for the exchange annually. Zhao, recalling the previous legal battle with Bloomberg, issued an apology published in July 2024. Bloomberg's Chinese publication acknowledged that the 2022 report accusing Binance of operating a Ponzi scheme was "false and unfounded" and decided to make a charitable donation instead of compensation.