Coinbase Denies Role in Alleged Leak Linking Binance and WLFI to Trump Pardon and USD1 Stablecoin

Crypto Giants Clash Amid Political Firestorm and Anonymous Media Leak

Coinbase has categorically denied any involvement in a media leak that sparked a wave of accusations tying Binance to a pardon request from Donald Trump and a controversial stablecoin allegedly linked to the pro-Trump entity World Liberty Financial Inc. (WLFI). The denial comes amid escalating tensions between the two largest U.S.-focused crypto exchanges and a widening political rift as the 2025 presidential election looms.

The uproar began after Bloomberg published a report on July 13–14, 2025, citing an anonymous source “familiar with the matter.” The source alleged that Binance had attempted to secure a pardon from former President Trump and had connections to WLFI, the group said to be behind a new stablecoin called USD1. WLFI is described as closely aligned with the Trump campaign and seen as a player in a broader Republican crypto lobbying push. The timing of the leak—just months ahead of the U.S. election—has drawn scrutiny from all corners of the industry.

Binance was quick to issue a forceful denial. A company spokesperson labeled the accusations “patently false and politically motivated,” stressing that Binance “has never sought a pardon from President Trump” and “has no relationship with WLFI or the USD1 stablecoin.” The exchange suggested that the report was part of a coordinated effort to damage its reputation amid ongoing regulatory scrutiny in the U.S.

Shortly after the Bloomberg article circulated, speculation erupted across the crypto sector that Coinbase was the source of the damaging information. Binance-aligned insiders and media voices alleged that Coinbase orchestrated the leak to undermine Binance’s influence and sabotage WLFI’s pro-Trump initiatives. Wallace, an X user, accused Coinbase of executing a deliberate “hit job,” targeting both Binance and WLFI with the intent to shift political momentum away from Trump-aligned crypto interests. Ian Miles Cheong, a popular crypto influencer, partly agreed.

Coinbase swiftly responded to the claims, issuing a clear-cut statement rejecting any implication of involvement. “Coinbase has not engaged in any campaign or effort to discredit Binance or any other company,” a spokesperson said. “Any suggestion that Coinbase is the source of the Bloomberg article is completely false and without merit.” The exchange reiterated its focus on regulatory compliance and innovation, distancing itself from what it described as politically charged narratives.

WLFI has also pushed back, describing the situation as a “smear campaign” allegedly driven by “pro-Biden industry insiders.” The group, which has been vocal in its support for Republican-led crypto initiatives, claims the article is part of a coordinated assault due to its political affiliations. WLFI’s representatives argue that the firm is being singled out for supporting a presidential candidate viewed favorably by many in the crypto sector.

The incident has further polarized the digital asset community. Some observers believe the leak was a calculated move to damage Binance’s standing during a politically sensitive time. Others argue the story was manufactured or manipulated to discredit Trump-associated crypto players. The source of the leak remains undisclosed, as Bloomberg has declined to comment or reveal further details about its reporting process.

The public fallout highlights the intensifying battle over crypto’s role in American politics. As lawmakers, regulators, and presidential candidates sharpen their positions, industry players appear increasingly entangled in political maneuvering. The Binance–Coinbase feud, now entangled with WLFI and the Trump campaign, underscores how power struggles within the industry are merging with electoral dynamics and media influence.

Despite the swirl of speculation, no concrete evidence has emerged linking Coinbase to the Bloomberg leak. Still, the episode has laid bare the fractures within the crypto industry, spotlighting the increasingly hostile relationship between its most influential platforms. With the 2025 U.S. election fast approaching, the intersection of blockchain, politics, and public perception appears more volatile than ever.

This article has been refined and enhanced by ChatGPT.