Key Takeaways
- Coinbase’s Chief Legal Officer, Paul Grewal, has refuted claims the exchange was behind Bloomberg’s report linking Binance to Trump’s WLFI.
- Binance founder CZ reposted claims that Coinbase was behind a smear campaign involving Trump’s crypto project and Binance.
- While CZ refrained from directly addressing the accusation against Coinbase, he slammed Bloomberg’s report as “another hit piece.”
Coinbase has denied rumors that it was the source behind Bloomberg’s report linking Binance to Donald Trump’s crypto project, World Liberty Financial (WLFI).
Paul Grewal, Coinbase’s Chief Legal Officer, rejected the allegations in response to a post from crypto commentator Matt Wallace, who claimed that Coinbase executives feared a potential pardon of Binance CEO Changpeng “CZ” Zhao.
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Rumors Spread
On Sunday, July 13, Wallace posted on X that evidence was mounting that Coinbase was the anonymous source “behind the hit job on President Trump’s World Liberty Financial and Binance.”
Wallace alleged that “higher ups” at Coinbase had learned of a possible pardon for CZ and were worried Binance could return “to the states with full legal status.”
“What is most shocking is that Coinbase would target President Trump in an attempt to hurt their competition.
This is anti-American! Will Coinbase fess up and face the heat for their poor decision? It will all come out soon!” he wrote.
The post gained additional traction when CZ reposted it, although he did not confirm or deny the claims.
Coinbase Fires Back
On Monday, July 14, Grewal refuted Wallace’s claims, calling them “pure misinformation.”
“Sorry— this is pure misinformation. We absolutely did not contribute to this story,” he wrote on X.
“We don’t attack competitors, and we welcome any businesses that share our goal of growing the crypto pie,” he said.
Adding: “You should keep looking for an actual source.”
Binance and WLFI
Bloomberg’s report , published Friday, alleged that Binance helped Trump’s crypto initiative by writing the initial code for USD1, the stablecoin used by World Liberty Financial.
It also stated that CZ applied for a presidential pardon shortly after the stablecoin was used in a $2 billion deal involving a UAE fund’s investment in Binance.
The report cited three unnamed sources familiar with the matter.
Following publication, CZ dismissed the story as “another hit piece,” claiming it was backed by a competitor.
“So many factual errors I don’t even know where to begin,” he wrote.
“Might have to sue them again for defamation,” he added.
Zhao’s Push for Presidential Pardon
After pleading guilty to one count related to Binance’s failure to maintain a proper Anti-Money Laundering program, CZ served four months in prison and was released in September 2024.
Since his guilty plea in 2023, CZ has publicly sought a presidential pardon.
In December 2024, he first cheekily wrote on X that he “wouldn’t mind a pardon” from Trump.
Months later, CZ has continued to reiterate his desire for a pardon from the President.
Although CZ has completed his sentence, the federal charge still stands and could hinder future business opportunities in the U.S.
A presidential pardon could allow him to regain an executive-level role within the U.S. crypto sector.
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