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Binance Co-Founder Threatens Legal Action Against Bloomberg Over Stablecoin Allegations

Changpeng “CZ” Zhao, the co-founder of Binance, has publicly refuted a recent Bloomberg report linking him to a stablecoin associated with World Liberty Financial (WLF).

Bloomberg claimed that Binance was involved in designing the smart contract of the WLF stablecoin, known as USD1.

The report suggested that this stablecoin played a role in a $2 billion investment deal tied to an Abu Dhabi firm.

In response, Zhao condemned the article as "FUD" (fear, uncertainty, and doubt) and indicated he may file a defamation lawsuit against Bloomberg for the second time.

He emphasized that the report contained numerous factual inaccuracies, challenging the journalistic integrity of the financial news giant.

This situation is compounded by Zhao’s previous legal dealings with Bloomberg, which resulted in an apology from the publication.

Zhao hinted that there are broader forces at play, suggesting that financial media outlets are attempting to undermine him and the crypto industry.

In a prior article, The Wall Street Journal also implied Zhao had connections to WLF’s activities, which he firmly denied.

The ongoing tensions between Binance and these media outlets highlight the contentious nature of cryptocurrency reporting.

As the legal landscape develops, the implications for Zhao and Binance may significantly impact the perception of stablecoins and crypto regulation.