Coinbase denies link to Bloomberg report on Binance and WLFI
Coinbase categorically refutes claims it contributed to the Bloomberg article
Coinbase has strongly denied allegations that it was the anonymous source behind a recent Bloomberg report connecting Binance to USD1 — a new stablecoin project allegedly linked to U.S. President Donald Trump.
The report also referenced World Liberty Financial (WLFI), the organization behind the USD1 token.
Key takeaways
- Coinbase denies being a source: The exchange categorically refutes claims it contributed to the Bloomberg article.
- Tensions rise in crypto politics: The controversy touches on Binance, USD1, and WLFI.
- Market fears and speculation: Critics claim Coinbase fears a Binance resurgence in the U.S. market.
Grewal rejects accusations, cites industry unity
Paul Grewal, Coinbase’s chief legal officer, described the accusations as “pure misinformation,” emphasizing that the company “absolutely did not contribute to this story.” He added that Coinbase refrains from attacking competitors and supports any legitimate effort to expand the cryptocurrency ecosystem.
Grewal emphasized Coinbase’s mission to support industry growth, saying, “We don’t attack competitors — we support anyone who helps grow crypto.” His statement came in response to claims made by independent commentator Wallace, who alleged Coinbase executives were motivated by concern over Binance’s possible reentry into the U.S. market, citing high fees and reputational risks.
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The controversial report tied Binance to USD1, a stablecoin issued by BitGo under license from WLFI, a firm with Trump-linked backing. Wallace further suggested that Coinbase executives had knowledge of Changpeng Zhao’s (CZ) potential pardon, implying political and strategic motives behind the leak.
Wallace claimed that Coinbase feared that Binance could regain access to the US market if Trump pardoned Changpeng Zhao.
According to CoinMarketCap, Binance ranks first among crypto exchanges in terms of daily trading volume ($19 billion), with Coinbase's volumes totaling about $3 billion.
Top Cryptocurrency Spot Exchanges. Source: CoinMarketCap
Broader industry implications
The exchange of accusations highlights increasing politicization of the crypto space, where rivalries between major platforms like Coinbase and Binance are becoming more than just business competition. The involvement of Trump-affiliated projects and regulatory tensions adds further complexity.
With Binance still under close scrutiny by U.S. regulators and Coinbase fending off similar challenges, the evolving narrative may shape how large exchanges interact — and compete — in the lead-up to the U.S. election cycle and potential crypto regulatory reforms.
This scandal involves two crypto giants and undermines investor confidence in the U.S. cryptocurrency market, especially against the backdrop of tough policies by U.S. regulators.
Read also: WLFI partners with protocol backed by Binance Labs.
