Former Binance founder CZ has refuted the claims. Unfortunately, there isn’t a smoking gun in either direction. The report cites anonymous sources, but CZ’s and World Liberty Financial’s statements don’t address the factual claims.

The relationship between Binance, the world’s largest crypto exchange, and President Trump’s crypto empire is a hazy one.

There are several unmistakable connections, like Binance listing USD1 or $32.8 million of the President’s meme coin moving to the exchange, but there’s a lot of speculation too. Today, Bloomberg prepared further allegations:

Citing three anonymous sources, the publication claimed that Binance wrote the code for Trump’s new stablecoin. Furthermore, it connected several publicly known incidents to the exchange.

Soon after launch, USD1 quickly reached a $2 billion market cap, and the stablecoin has an extremely concentrated supply. The report alleges that Binance is responsible for both of these.

So, put together, this suggests a deeply connected relationship. If Binance coded, purchased, and currently holds most of the extant USD1 supply, that would necessitate a Trump connection.

In particular, the report suggests that the Trump family could earn passive income from this custody arrangement.

Still, since these sources are anonymous, they remain unconfirmed without concrete evidence. Changpeng “CZ” Zhao, Binance’s founder, took intense umbrage with the piece:

From a neutral perspective, Binance and CZ have been receiving significant allegations of being directly involved with World Liberty Financial and Trump’s crypto efforts. Yet, these allegations have not been proven through any tangible evidence.

Most importantly, across all the recent reports on this matter, sources have largely been cited as ‘anonymous’, which doesn’t provide any substance for public verification.

For the most part, the latest report spilled a lot of ink rehashing the history of Binance’s alleged dealings with Donald Trump. It claimed that this presents a conflict of interest for the President, as he would have a financial incentive to issue a pardon.

However, it’s important to remember that CZ’s statement relied on ad hominem attacks, and he did not dispute even one specific fact. Other than raising the issue of a defamation lawsuit, he didn’t comment on the piece itself. Bloomberg published several similar statements from all the involved parties.

For example, Trump’s White House refused to comment, a Binance spokesperson noted that CZ is not a current employee, and World Liberty Financial said the outlet was trying to “further a political agenda.”

Whether or not CZ works at the exchange, he is unequivocally an influential presence, and none of the other statements addressed any facts.

Previously, CZ denied seeking a Presidential pardon for his money laundering conviction before openly applying for one. And still, partnership rumors continue to this day.

All that is to say, a defamation lawsuit might actually shed some light on the situation. If Bloomberg would submit evidence about Trump and Binance in a court of law, we’d know the extent of these USD1 coding allegations.

For now, though, it seems like the two parties will keep going back and forth, rehashing the subject for the foreseeable future.

The post New Report Alleges Binance of Creating the Trump-Linked USD1 Stablecoin appeared first on BeInCrypto.

Source: https://beincrypto.com/binance-cz-usd1-stablecoin-trump-rumors/