Binance Founder Fuels Coinbase Rumors With Controversial Move
Binance founder Changpeng “CZ” Zhao stirs controversy after retweeting an explosive claim by influencer Matt Wallace that Coinbase fed Bloomberg a damaging report on Binance’s alleged ties to a Trump-backed crypto project. The unverified post, shared with CZ’s 10 million followers, lands just two days after Bloomberg published its July 11 exposé, sparking a wave of speculation across the crypto world and reigniting tensions between the two rival exchanges.
In Brief:
- CZ Escalates Feud: CZ retweets a claim that Coinbase leaked damaging info to Bloomberg, intensifying Binance-Coinbase tensions.
- WLFI at the Center: The report targeted Binance’s alleged role in World Liberty Financial, a Trump-linked crypto project issuing the USD1 stablecoin.
- Unverified, But Viral: No evidence backs the Coinbase claim, but CZ’s retweet fuels speculation across crypto circles.
Over the weekend, Binance founder Changpeng “CZ” Zhao retweeted a provocative post by crypto influencer Matt Wallace, who claimed that Coinbase was the anonymous source behind Bloomberg’s recent report on Binance’s ties to World Liberty Financial (WLFI)—a Trump-connected crypto project.
The retweet came just two days after Bloomberg’s July 11 exposé alleged Binance helped develop WLFI’s USD1 stablecoin, promoted it, and continues to hold over 90% of its supply in Binance-controlled wallets. The report also questioned the timing of CZ’s U.S. presidential pardon request, filed shortly after a UAE sovereign wealth fund invested $2 billion in Binance.
While CZ publicly dismissed the article as a “hit piece” and threatened another defamation suit—reminiscent of his earlier legal battle with Bloomberg’s Chinese edition—he made no direct mention of Coinbase. His Friday X post read:
“FUD. Bloomberg just wrote another hit piece (sponsored by a competitor) containing so many factual errors I don’t even know where to begin. Might have to sue them again for defamation.”
Coinbase Accusation Sparks Crypto Firestorm
Wallace, a self-described crypto commentator and Dogecoin advocate with over 2 million followers on X, posted the explosive allegation early July 13. Wallace’s post accused Coinbase of acting out of fear of Binance’s return to the U.S. market.
“Evidence is emerging that COINBASE was the ‘anonymous’ source behind the hit job on President Trump’s World Liberty Financial and Binance,” he wrote. “Binance is the world’s #1 crypto exchange. A return to the U.S. would immediately cut into Coinbase’s market share.”
No proof accompanied Wallace’s allegation. Yet CZ’s decision to amplify it—retweeting it without qualification—only heightened the intrigue. Within hours, his retweet was circulating widely across crypto Twitter.
Binance-Coinbase Rivalry Intensifies Amid WLFI Drama
The episode underscores the simmering tensions between Binance and Coinbase, which have grown more pronounced as CZ looks to reestablish Binance’s presence in the U.S. following a prison term for anti-money laundering violations.
The Bloomberg piece alleged that Binance was not just tangentially involved with WLFI—it may have played an instrumental role in the stablecoin’s launch and stood to benefit financially from the token’s adoption.
Binance and CZ denied those assertions.
“To clarify: Binance and I are not involved with WLFI. We did not buy the tokens, and we have no business relationship with them,” the Binance founder said in another X post.
Still, the timing of CZ’s pardon request, coming on the heels of major investment and amid WLFI’s rise, raised red flags in the media. The Trump family’s alleged ties to WLFI added further scrutiny.
For now, CZ’s retweet has added a new layer to the unfolding drama—suggesting not just media bias, but inter-exchange sabotage. Without concrete evidence, the claim remains speculative. But in the high-stakes, high-noise world of crypto, it’s already made an impact.
