Coinbase Faces Accusations in Trump - Binance Controversy

Coinbase is facing criticism after allegations surfaced linking the exchange to a coordinated media attack targeting Binance and Donald Trump. There is speculation that the US-based cryptocurrency giant may have leaked information to reporters about Binance's role in the USD1 stablecoin project of World Liberty Financial. This incident occurs against the backdrop of information that President Trump may pardon Binance founder Changpeng Zhao (CZ), who was serving a sentence after pleading guilty in 2023. The possibility of CZ returning to cryptocurrency activities in the U.S. has raised concerns among Coinbase's leadership. Many industry experts believe that the fear of Binance's return to competition could be the real motivation behind this smear campaign. In addition, criticism is increasing regarding Coinbase's high transaction fees and the decline in user satisfaction. Many traders have long preferred Binance due to lower costs and a smoother experience. Therefore, Binance's return to the U.S. will seriously threaten Coinbase's market dominance. Some cryptocurrency experts believe that this exchange is currently relying on political influence rather than product improvements to maintain control. CZ Defends Binance Against Allegations Meanwhile, CZ has strongly denied the accusations reported by Bloomberg. The article claims that Binance developed a smart contract for USD1 and benefited from a $2 billion deal involving the UAE. The article also alleges that CZ directly sought a pardon from Trump, implying a quid pro quo arrangement related to World Liberty Financial. However, CZ dismissed this article, calling it a "hit piece" funded by competitors, containing "too many factual inaccuracies." Furthermore, CZ hinted at suing Bloomberg, similar to what he had done before. He emphasized that Binance frequently supports new cryptocurrency projects and the involvement of the Trump family does not indicate any wrongdoing. Additionally, he questioned the integrity of media organizations targeting projects related to political figures while ignoring deeper issues in the industry. CZ Expands Global Cryptocurrency Influence Since his release, CZ has been actively participating in global cryptocurrency activities. In April, he signed a blockchain consulting agreement with Kyrgyzstan. Shortly thereafter, he joined Pakistan's new Cryptocurrency Council as a chief advisor. These moves demonstrate CZ's ongoing influence despite the legal troubles in the United States.