Binance founder Changpeng "CZ" Zhao has amplified allegations by social media influencer Matt Wallace claiming Coinbase is the anonymous source behind negative media campaigns targeting Binance and former President Donald Trump's World Liberty Financial (WLF) initiative. Wallace stated on X: "Evidence is emerging that COINBASE was the 'anonymous' source behind the hit job on President Trump’s World Liberty Financial and Binance."
The accusations emerge against the backdrop of Binance's historical regulatory challenges, including a $4.2 billion settlement with the DOJ, FinCEN, and CFTC in 2023, which resulted in CZ's imprisonment and resignation as CEO. Wallace contends Coinbase executives fear a potential presidential pardon for CZ could enable Binance's return to the U.S. market, threatening Coinbase's market share due to Binance's lower fees and superior customer service.
This controversy follows Bloomberg's recent retraction of a defamatory article about CZ, highlighting a pattern of critical media coverage against Binance. Meanwhile, exchange competition intensifies globally, with Kraken acquiring NinjaTrader for $1.5 billion and Coinbase purchasing Deribit and Opyn's team to expand services.