Coinbase’s Alleged ’Hit Job’ on Trump-Linked World Liberty Financial & Binance Sparks Crypto War
Coinbase just lobbed a grenade into crypto's political arena—and the shrapnel's hitting everyone from Trump affiliates to Binance.
Behind the 'public service' facade? A calculated power play that reeks of regulatory opportunism.
World Liberty Financial caught in crossfire
The Trump-connected fintech firm suddenly finds itself in Coinbase's crosshairs—convenient timing as Washington tightens crypto oversight. No evidence presented, just explosive accusations that magically align with Coinbase's lobbying efforts.
Binance collateral damage
The exchange giant gets dragged in through vague association, reigniting old regulatory battles. Coinbase's 'warning' reads like a greatest hits album of competitors' compliance failures—curated while their own legal team expands DC offices.
Wall Street's watching with popcorn
Traditional finance barely stifles yawns as crypto's 'revolutionaries' devour each other. The real tell? This 'exposé' dropped hours before Coinbase's quarterly earnings call—because nothing boosts stock prices like manufactured controversy.
Crypto Giants Clash
In that tweet, Wallace claimed that Coinbase knows Changpeng Zhao (CZ)’s potential pardon. With high fees and subpar services, Coinbase’s top executives fear Binance’s legal return to the U.S. market, which could seriously threaten their market share and profits.
“Evidence is emerging that COINBASE was the “anonymous” source behind the hit job on President Trump’s World Liberty Financial and Binance” Wallace stated.
A chart from CoinMarketCap shows Binance currently leading in 24-hour trading volume with nearly $19 billion, far ahead of Coinbase, which has just over $3 billion. This difference could spark a fierce rivalry between the two industry giants.
Binance’s return, banned in the U.S. since 2023 following a money laundering lawsuit, could topple Coinbase’s position, especially amid rumors of CZ seeking a pardon from Trump.
Most notably, Coinbase is accused of targeting Trump, an action Wallace deems “anti-American.” Previously, Wallace also emphasized that the “smear campaign” used reports from Bloomberg, which, according to Wallace, were dishonest.
Many reports pointed out the close connection between Binance and the TRUMP family’s World Liberty Financial project. Specifically, WLFI founders and CZ met in Abu Dhabi to discuss standardizing the crypto industry and boosting global adoption efforts. A new report claims Binance wrote the source code for Trump’s USD1 stablecoin and is significantly involved.
In that context, Coinbase’s Chief Legal Officer has denied this information.
“Sorry— this is pure misinformation. We absolutely did not contribute to this story. We don’t attack competitors, and we welcome any businesses that share our goal of growing the crypto pie.” Paul Grewal declared.
In response, CZ’s retweet neither confirms nor denies the claims. However, this has raised questions about Coinbase’s transparency. This war affects the two giants and impacts investor confidence in the U.S. crypto market, which is already under strain from stringent regulatory policies.
