Binance Founder Says Bloomberg’s USD1 Report is False, Threatens Lawsuit

Binance founder Changpeng Zhao has once again threatened legal action against Bloomberg.

His reaction came after the outlet published a report on Friday alleging Binance’s involvement in the development of the USD1 stablecoin.

Taking to X, Zhao slammed the article as “another hit piece,” claiming it was likely backed by a rival firm. He said the goal was to spread fear, uncertainty, and doubt—commonly known in crypto as “FUD.”

“Too many factual errors to count,” Zhao wrote in his post. “Might have to sue them again for defamation.”

What Bloomberg reported

The controversial Bloomberg report cites three unnamed sources. According to them, Binance allegedly wrote the base smart contract code for USD1, a stablecoin recently under scrutiny.

He did not specify which parts of the article he disputed, but his statement strongly rejected any suggestion of Binance’s technical involvement in USD1.

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Context: Legal history and market tension

This is not the first time Zhao has challenged Bloomberg. In 2022, he filed a defamation suit against the outlet’s Hong Kong affiliate. That case stemmed from an article he claimed painted him and Binance in a misleading light.

The new allegations come amid heightened competition in the stablecoin market, with multiple exchanges seeking to gain dominance. The USD1 token’s emergence has sparked questions about transparency and control—issues that continue to draw attention from regulators and media.

Whether he proceeds with new legal action remains to be seen, but his latest statement signals that Binance will aggressively defend its reputation.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.