Changpeng Zhao Debunks WSJ Report on His Alleged Involvement in Trump-Linked Crypto Agency

Key Takeaways:

• CZ rejects WSJ’s “fixer” claims, calling it anti-crypto bias.
• Ethics probes goal Trump-linked WLFI as his household takes 75% of token income.
• VIPs lose $3.9B on $TRUMP tokens; critics name it a Ponzi scheme.

“I’m not a fixer for anybody,” fired Changpeng “CZ” Zhao on Might 23, slamming a Wall Road Journal report that tied him to a Trump-linked crypto enterprise. The Binance founder referred to as the claims “politically motivated” because the conflict over crypto affect escalates.

The WSJ mentioned Changpeng Zhao acted as a behind-the-scenes dealmaker for Trump-linked crypto enterprise World Liberty Monetary (WLF). Nevertheless, Zhao says the story misrepresented the info. That is his second combat with the newspaper in just some months.

Changpeng Zhao vs. WSJ: A Conflict of Narratives or Media Bias?

In accordance with The Wall Road Journal, Changpeng Zhao launched Pakistani entrepreneur Bilal bin Saqib to WLFI co-founder Zach Witkoff, serving to organize conferences that resulted in a authorities settlement.

Zhao denied this, saying, “I first met Mr. Saqib on that journey,” and argued that Saqib and the Witkoffs already knew one another. He referred to as the story “flawed.”

The dispute revolves round conflicting claims about CZ’s affect. The WSJ recommended his function was key to WLFI’s $550 million token gross sales and a $2 billion Abu Dhabi deal. Zhao additionally disputed this, saying the report contained errors.

His group despatched corrections, however the Journal didn’t embody them, which Zhao referred to as “biased reporting.”

The report additionally raised moral considerations, noting WLFI leaders mix authorities and personal enterprise. Steve Witkoff serves as a Trump envoy whereas his son Zach runs WLFI, which has raised $550M this yr.

This marks the second conflict between CZ and the Journal in months after an April report citing unnamed sources claimed Zhao agreed to testify in opposition to Tron’s Justin Solar throughout his plea negotiations. He branded that “baseless,” noting that protected witnesses keep away from jail.

Critics see a sample as Zhao now frames each episodes as anti-crypto media bias, at the same time as regulators sharpen oversight of ventures like WLF. But impartial observers have questions.

If Changpeng Zhao wasn’t concerned, why did WLF’s Pakistan deal occur after these conferences? And why does the Journal stand by its sourcing? The stakes prolong past headlines.

Trump’s Crypto Empire: The place Politics and Digital Belongings Collide

The controversy echoes wider tensions in Washington. Simply three days earlier than CZ’s rebuttal, SEC Chair Paul Atkins confronted heated congressional questioning about paused investigations into each Justin Solar and a Trump-linked meme coin. Critics additionally see a sample of particular therapy, whereas proponents cry political focusing on.

Atkins insisted the Tron case remained lively whereas touting new stablecoin rules—at the same time as WLFI ready to launch its personal Treasury-backed USD1 stablecoin.

Nevertheless, the connections run deeper than regulatory filings.

For instance, President Trump’s household maintains a 60% stake in WLFI, which directs 75% of token sale revenues to their coffers whereas allocating simply 5% to platform improvement.

This lopsided monetary construction raised a number of eyebrows at WLFI’s latest Virginia golf membership gala, the place Justin Solar acquired a golden watch from POTUS after amassing main $TRUMP holdings.

The fundraiser introduced in $148 million from unique dinners, with one investor overtly admitting folks purchased WLFI tokens primarily due to the “crypto president” hyperlink.

Watchdog teams name this the clearest mixture of political energy and crypto but, the place leaders revenue from digital property and regulators advance some instances whereas slowing others.

From $550M Gross sales to $3.9B Losses: The Volatility of Trump-Linked Tokens

New information exhibits $TRUMP whales, together with VIPs finally Friday’s Washington dinner, at the moment are deep within the purple. In accordance with Bloomberg, 19 key wallets noticed their $TRUMP holdings drop 52% in only a month.

The most important bag plunged $48 million underwater after costs collapsed from $61 to $12 on 800,000 tokens.

The injury spreads far past just some buyers. 590,000 wallets misplaced a mixed $3.9 billion, whereas Chainalysis studies $320 million in buying and selling charges went to Trump-linked entities.

CNBC’s Dan Nathan calls it a “good Ponzi scheme,” arguing countless inflows prop up costs whereas lining the Trump Group’s pockets.

Now, lawmakers are stepping in. Senators Elizabeth Warren and Adam Schiff need an ethics investigation, and new MEME laws might block public officers from profiting off tokens.

In the meantime, World Liberty Monetary and backers of the USD1 Treasury-backed stablecoin have blasted the Senate’s inquiry into their dealings.

A letter from main U.S. legislation agency BakerHostetler, WLF insists USD1 holds full short-term Treasury reserves and pitches the coin as a medium to channel world demand into US debt, protecting crypto dominance on U.S. soil.

Ceaselessly Requested Questions (FAQs)

May CZ’s public feud with WSJ set off stricter crypto media scrutiny?

It’s doable. Excessive-profile disputes could strain regulators to evaluate journalistic requirements in crypto protection, probably mandating disclosures or audits to curb perceived bias or misinformation in monetary reporting.

Why are buyers nonetheless backing Trump-linked tokens regardless of huge losses?

As a result of some consider political ties assure long-term positive factors, whereas others speculate on hype for positive factors regardless of the volatility available in the market.

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