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Coinbase Chief Legal Officer Paul Grewal has firmly denied any connection between the exchange and a recent Bloomberg report that claims Binance played a key role in launching World Liberty Financial (WLFI), a crypto project linked to President Donald Trump.
The report, published on July 11, cited anonymous sources who alleged that Binance helped develop the smart contract for WLFI’s USD1 stablecoin and promoted the token in a $2 billion transaction.
Since its publication, speculation has spread across social media, accusing Coinbase of being the anonymous source behind the story.
In a July 13 post on X, Grewal rejected the assertions, saying:
“We absolutely did not contribute to this story. We don’t attack competitors.”
He stated that the company focuses on expanding the broader crypto ecosystem and welcomes the presence of others who share that vision.
Social media speculations
Grewal’s statement was in response to crypto influencer Matt Wallace’s controversial speculation on X.
Wallace had claimed Coinbase may have supported the Bloomberg report out of fear that a potential US pardon for Binance founder Changpeng Zhao could open the door for Binance’s return to the American market.
He argued that such a comeback might threaten Coinbase’s dominant position, especially given its higher trading fees and ongoing criticism around customer service.
Another popular crypto influencer, Ian Miles Cheong, also alleged that Coinbase could be behind the hit. The influencer wrote on X:
“I’d bet that a competitor like Coinbase is behind this. Higher fees, worse platform. They’re trying to take down Binance, and they’re using the Trump angle to do it.
Although Zhao has not named Coinbase directly, he retweeted several posts suggesting that a competitor was behind the Bloomberg article and labeled the report as “FUD.”
Zhao said:
“Bloomberg just wrote another hit piece (sponsored by a competitor) containing so many factual errors I don’t even know where to begin. Might have to sue them again for defamation.”
Notably, Zhao has a hostile relationship with the traditional media house and has consistently criticized the outlet for the quality of their reporting over the years.
Nonetheless, the current controversy comes at a time of heightened scrutiny in the crypto industry, as political affiliations and regulatory outcomes increasingly shape market narratives.
While Coinbase and Binance continue to compete for market share, both are navigating a complex landscape shaped by enforcement action, policy debates, and shifting sentiment.
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