CZ Hints Coinbase Leaked Trump Stablecoin Story — Shibarium Wins Trust

Binance founder Changpeng “CZ” Zhao has shared a claim on X suggesting that Coinbase was the unnamed source behind a Bloomberg report critical of President Donald Trump’s crypto venture, World Liberty Financial, Inc., and Binance itself.

In a July 13 post on X, crypto commentator Matt Wallace alleged that Coinbase was the unnamed source behind what he described as a “hit piece” targeting WLF and Binance. “What is most shocking is that Coinbase would target President Trump in an attempt to hurt their competition,” Wallace wrote. 

Wallace further asserted that Coinbase became concerned after learning a potential pardon for Zhao was under consideration, which could enable Binance to reenter the U.S. market with full legal standing. He argued that Coinbase, known for its “industry high fees” and “poor customer service,” might view Binance’s return as a significant competitive threat.

“Binance is the world’s #1 crypto exchange. A return to the U.S. would immediately cut into Coinbase’s market share and do severe damage to their bottom line,” Wallace wrote. 

Zhao reposted Wallace’s message on X without providing confirmation or denial of the claims made.

Coinbase’s Chief Legal Officer, Paul Grewal, responded to the allegations, dismissing them as “pure misinformation.” “We absolutely did not contribute to this story. We don’t attack competitors, and we welcome any businesses that share our goal of growing the crypto pie,” Grewal stated in a post on X, encouraging Wallace to continue searching for the true source of the information.

Bloomberg’s report alleged that Binance played a role in developing the smart contract behind USD1, a stablecoin issued by World Liberty Financial. The article also claimed that Zhao sought a presidential pardon shortly after USD1 was involved in a $2 billion transaction linked to a UAE investment fund.

Additionally, the report emphasized that more than 90% of USD1 tokens are still held in Binance wallets, potentially accruing tens of millions in annual interest revenue.

Centralized Risks Exposed by Coinbase-Leak Claims

This high-profile dispute between leading crypto exchanges emphasizes the intensifying regulatory scrutiny facing the industry. For SHIB holders, it serves as a timely reminder of the risks associated with centralized platforms, where legal battles and leaked information can impact operations and user confidence.

In contrast, decentralized ecosystems like Shibarium offer a more resilient alternative by leveraging on-chain transparency and trustless protocols.

As regulatory pressures increase, platforms built on decentralized infrastructure, including Shibarium’s on-chain bridges and liquidity solutions, stand to gain in importance. These tools reduce reliance on centralized intermediaries, minimizing vulnerabilities and fostering greater security for users.

For the Shiba Inu community, this shift toward decentralized solutions not only aligns with the ethos of blockchain but also positions Shibarium as a critical player in navigating an evolving and complex regulatory landscape.

Read More

• Supreme Court Lets IRS Keep Access to Coinbase User Crypto Data
• Binance Opens Full Crypto Trading in Syria After Sanctions Lift
• UAE Firm Buys $100M Stake in Trump-Backed World Liberty Financial Token

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.