The Legal Battle Between Binance Founder CZ and Bloomberg Continues
Changpeng Zhao, the founder of Binance, has once again threatened to take legal action against news agency Bloomberg for publishing what he claims to be a defamatory article. This marks the second time CZ has considered suing Bloomberg over allegations linking Binance to the USD1 stablecoin.
In a recent social media post, CZ criticized the Bloomberg report as a “sponsored hit piece” aimed at creating fear, uncertainty, and doubt within the crypto community. While not explicitly naming the competitor behind the alleged sponsorship, CZ hinted at the possibility of pursuing a defamation lawsuit against Bloomberg for the inaccuracies in their reporting.
CZ highlighted numerous factual errors in the Bloomberg article and expressed his frustration by stating, “Might have to sue them again for defamation.”
Unpacking the Controversial Bloomberg Report
The crux of CZ’s legal threat stems from a recent Bloomberg report that suggested Binance was involved in developing the core smart contract code powering the USD1 stablecoin. The article cited anonymous sources and raised concerns about potential conflicts of interest between Binance and World Liberty Financial, the organization behind USD1.
Allegations of CZ acting as a ‘fixer’ for the World Liberty Financial team and seeking a pardon from President Donald Trump added fuel to the fire. The report insinuated that CZ’s interactions with World Liberty Financial and his involvement in the USD1 launch could lead to conflicts of interest and regulatory scrutiny.
Despite CZ’s denials and the lack of concrete evidence supporting the claims made in the Bloomberg report, the controversy surrounding Binance’s alleged ties to USD1 continues to spark debate within the crypto community.
CZ’s History of Legal Battles with Media Outlets
This isn’t the first time CZ has found himself embroiled in legal disputes with media agencies. In the past, he has sued publications like Modern Media for defamation, with cases related to allegations of operating a ponzi scheme and facilitating money laundering.
While CZ has successfully resolved some of these legal battles through retractions and apologies from the media outlets, the ongoing conflict with Bloomberg underscores the challenges faced by prominent figures in the crypto industry when dealing with negative press coverage.
As CZ considers his options regarding the latest allegations, the crypto community stands divided on the issue, with some urging him to pursue legal action against Bloomberg to defend his reputation and that of Binance.
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