tl;dr
Coinbase chief legal officer Paul Grewal denied allegations that Coinbase contributed to a Bloomberg story involving World Liberty Financial and Binance, calling the claims misinformation and stating Coinbase does not attack competitors. The accusations arose from a crypto commentator's claim that C...
Coinbase chief legal officer Paul Grewal has categorically denied allegations that the exchange contributed to a Bloomberg story involving World Liberty Financial and Binance. In a statement posted on X, Grewal called the accusation misinformation, emphasizing that Coinbase does not engage in attacking competitors and was not a source for the report. He urged that the search for the actual source should continue, reinforcing Coinbase's stance of collaboration within the crypto industry to expand the market.
The allegations surfaced in response to a post by crypto commentator Matt Wallace on X, who claimed Coinbase was behind the anonymous leak aiming to sabotage Binance’s potential US resurgence linked to founder Changpeng Zhao possibly receiving a presidential pardon. Wallace argued that Binance’s return to the US market, due to its global presence and lower fees, could threaten Coinbase’s market share. He described the supposed action as anti-American for involving the US president. Zhao himself retweeted Wallace’s post, fueling speculation about his acceptance of these claims despite the lack of concrete evidence.
The controversial Bloomberg story at the center of this dispute claimed that Binance developed the smart contract for USD1, a stablecoin launched by World Liberty Financial – a crypto venture supported by the Trump family. Bloomberg reported that this stablecoin played a role in a $2 billion investment into Binance’s UAE sovereign fund, linking these events to Zhao’s efforts to secure a presidential pardon. USD1 reportedly has a circulating supply of $2.20 billion, with Binance holding approximately $2 billion worth.
Zhao has vehemently criticized the Bloomberg article, referring to it as a hit piece and suggesting it was backed by competitors. He has even threatened legal action for defamation, recalling a previous lawsuit against Bloomberg in 2022 that resulted in the media outlet issuing an apology. Known for his skepticism of mainstream coverage, Zhao accuses several major publications of propagating false narratives about himself and the broader crypto industry. He recently confirmed having applied for a presidential pardon through official channels but has not met with the US president.