CZ’s Repost Reveals Alleged Coinbase Role Behind Bloomberg’s False Reports

On July 13, 2025, at 03:41 UTC, Binance co-founder Changpeng Zhao (CZ) reposted a post from Matt Wallace, alleging evidence that Coinbase was the “anonymous” source behind negative reports targeting World Liberty Financial (WLFI) and Binance.

The post claimed Coinbase feared losing market share if CZ, who served four months in prison for anti-money-laundering violations in 2023, receives a pardon and leads Binance’s return to the U.S. market. The accusation implies Coinbase may have leveraged Bloomberg to disseminate misleading content, intensifying an already heated rivalry.

CZ Threatens Legal Action Against Bloomberg Again

This is not the first clash between CZ and Bloomberg. In 2022, Zhao sued Bloomberg for defamation, ultimately securing a public apology in July 2024 after a two-year legal battle. Now, Zhao has once again threatened legal action against Bloomberg, following a recent report claiming Binance wallets hold over $2 billion in USD1—WLFI’s stablecoin—drawing renewed scrutiny to the exchange as of July 2025. This legal threat reflects CZ’s continued resolve to challenge what he sees as media misinformation.

WLFI, a crypto startup backed by the Trump family, raised $550 million through the sale of its $WLFI token and launched the USD1 stablecoin in March 2025. USD1 is said to be fully backed by U.S. Treasuries and cash equivalents.

CZ further escalated the narrative by reposting @stillgray, stating, “Bloomberg is disgusting, I’d bet a competitor like Coinbase is behind this”. This marks a bold accusation that Coinbase may have influenced Bloomberg to publish false content, igniting a heated debate in the crypto community.

Motive Behind Bloomberg’s Alleged Defamation

The alleged defamation may stem from competitive pressures, with Coinbase potentially acting as the puppet master. Binance, the world’s largest crypto exchange by trading volume, has been absent from the U.S. since 2018 due to regulatory restrictions. However, CZ’s potential return could disrupt Coinbase’s dominant market position.

Coinbase has been criticized for trading fees ranging from 0.03% to 0.60%, as well as for subpar customer service. In contrast, Binance offers lower fees with additional discounts for using Binance Coin (BNB), and supports over 350 cryptocurrencies compared to Coinbase’s 280.

WLFI’s partnership with Binance around the USD1 stablecoin—combined with strategic token acquisitions, including $75 million in TRX from Justin Sun and new Abu Dhabi partnerships—has raised the stakes even further.

Speculation about a Trump administration pardon for CZ has gained traction since USD1’s launch, raising the possibility of Binance reentering the U.S. and threatening Coinbase’s position in the $237 billion stablecoin market currently dominated by Tether and USDC.

Community Perspective

The broader crypto community has reacted strongly to the allegations of media manipulation. Influential X user @WallStreetMav called Bloomberg’s coverage “despicable behavior by the media,” accusing it of twisting Binance’s involvement in early-stage projects “just to take a shot at Trump.”

In a follow-up post, he claimed it was “likely a high level employee at Coinbase” who coordinated the story, warning that dragging the President into a corporate rivalry would “backfire.”

These remarks, while unverified, reflect growing sentiment within the crypto space that traditional media narratives are being co-opted for competitive or political gain—especially when the stakes involve leading exchanges and controversial public figures.