Tensions in the crypto sector escalated over the weekend following allegations that Coinbase was the unnamed source behind a Bloomberg report scrutinizing Donald Trump’s crypto project, World Liberty Financial, and Binance.

Coinbase exec, however, has denied the allegations.

Allegations Stir Crypto Rivalries

Crypto commentator Matt Wallace claimed on X that Coinbase executives were concerned that a potential pardon for Binance’s former CEO Changpeng ‘CZ’ Zhao could clear the way for his return. He alleged they attempted to undermine the crypto exchange out of fear that its re-entry into the US market would threaten Coinbase’s market share.

Wallace described Coinbase’s alleged targeting of Trump as “anti-American,” and added that the company’s leadership viewed Binance’s legal return as a direct threat to their business. The post was later reshared by Zhao, who neither confirmed nor denied the claims but indicated that he may consider legal action against Bloomberg for defamation.

Bloomberg’s report had detailed Binance’s involvement in creating the smart contract for USD1, a stablecoin issued by World Liberty Financial, while linking Zhao to a request for a presidential pardon shortly after the token featured in a multibillion-dollar UAE investment deal with Binance. The report further stated that a significant share of USD1 tokens remains in Binance wallets, which suggests potential interest earnings for the exchange.

Coinbase’s chief legal officer, Paul Grewal, responded directly to Wallace’s accusations on X and called them “pure misinformation.” He also asserted that Coinbase had no involvement in providing information to Bloomberg.

“We don’t attack competitors, and we welcome any businesses that share our goal of growing the crypto pie. You should keep looking for an actual source.”

“Standard Collaboration, Not Corruption”

The episode has drawn significant attention from industry players. Blockchain advisor Anndy Lian also criticized Bloomberg’s report on Binance and Trump. In a post on X, Lian noted the article relied on anonymous sources without concrete evidence of payments or explicit coordination between Trump and CZ.

He argued the piece exploited a national tragedy for political narratives and lacked a factual basis. He also added that the crypto exchange’s activities align with industry norms and that no direct evidence links Trump’s business interests to policy decisions.

CZ had stepped down as Binance’s CEO last year following legal settlements with US authorities, and has kept a relatively low profile ever since. In May, CZ confirmed applying for a presidential pardon from Trump after reports linked him to such efforts.

Citing Trump’s past BitMEX pardons, the Binance co-founder said that he’s the only person jailed solely for a BSA violation. Despite seeking clemency, CZ said that he won’t return to Binance leadership.

Bitcoin’s impressive price surge over the past several days came to a halt hours ago after US President Donald Trump threatened Russia with “very severe tariffs” if it fails to reach a peace deal with Ukraine within 50 days.

According to some reports, the POTUS plans to sell US weapons to European countries, who will later transfer them to Ukraine.

Trump, who promised to end the war in Eastern Europe immediately after becoming president during his election campaign, has had a rather rocky relationship with Ukraine’s Zelenskyy ever since he reentered the White House in January 2025.

However, his most recent actions have showcased a tougher approach against Russia and its allies:

“We’re going to be doing very severe tariffs if we don’t have a deal in 50 days,” Trump said. “Tariffs at about 100% you’d call them secondary tariffs. You know what that means.”

Citing a White House official, CNN reported that these secondary tariffs meant 100% taxation against Russia and further sanctions on countries that buy oil from the world’s largest nation by landmass.

Trump’s tariff threats in the past several months have harmed the cryptocurrency market, with the most evident example taking place in April when bitcoin plunged below $75,000 to mark a five-month low.

However, their impact seems muted lately as BTC remained unshaken during the weekend when the POTUS said the EU and Mexico will face 30% sanctions starting from August 1.

However, today’s threats impacted the primary digital asset, which dropped below $120,000 after marking a new all-time high above $123,000 earlier.

If you want to read more about the potential reasons that fueled BTC’s massive $15,000 surge within less than a week, you can check this article. However, there are certain warnings about its short-term price direction, which can be seen here.

A high-stakes crypto trader going by the handle @qwatio on X has suffered one of the most dramatic liquidations in recent memory, losing $334 million in under three hours as Bitcoin (BTC) rocketed to a new all-time high (ATH) on Monday morning.

The sudden uptick caught many short sellers off guard, but none more spectacularly than this whale, whose aggressive, leveraged bets on BTC, Ethereum (ETH), and Fartcoin (FARTCOIN) imploded in real time.

A Gambler’s Downfall

The trader, operating from the wallet address 0x916E and tracked by Lookonchain, had aggressively bet against the market’s upward momentum. According to posts from the analytics platform, his run of bad luck began days earlier when an initial short position backfired, incinerating $16.28 million in USDC.

Undeterred, the gambler returned with a fresh $10 million top-up, seemingly determined to win it all back. He went on to short 1,273 BTC, worth approximately $150 million, at a risky 40x leverage, while also doubling down on 33,743 ETH valued at about $99.8 million using 25x leverage.

This desperate recovery attempt lasted less than 48 hours. At the time, Bitcoin hovered around $119,000 and appeared ripe for a pullback. But instead of a reversal, the market accelerated upward, and @qwatio’s new positions imploded: 458 BTC ($55 million), 12,147 ETH ($36.55 million), and 5.4 million FARTCOIN ($7.33 million) vanished in liquidation flames.

Rather than retreat after being licked twice in quick succession, the punter tripled down, only to get kicked in the teeth one more time. His massive short positions, including 1,743 BTC valued at $211 million, 33,743 ETH worth just north of $102 million, and 15 million FARTCOIN priced at $20.6 million, were washed down the drain, bringing his total losses across the three brutal episodes to $25.84 million.

Whiplash Market Claims Multiple Victims

The trader was not alone in his suffering, with Bitcoin’s 15% weekly surge past $123,000 triggering industry-wide carnage that saw liquidations exceeding $730 million.

However, while the likes of hedge fund Abraxas Capital watched $107 million evaporate from short hedges on Hyperliquid against BTC, ETH, and SOL holdings, the same volatility salvaged others. Pseudonymous trader AguilaTrades miraculously erased a $35 million deficit through a perfectly timed 3,000 BTC long, turning it into a $2.3 million profit as Bitcoin found a new peak.

According to market watchers like Redstone COO Marcin Kazmierczak, the rally reflects bullish momentum driven by Trump’s newly announced 30% tariffs on the EU and Mexico, combined with institutional demand from ETF inflows.

BTC was not alone in its stellar performance, with ETH reclaiming the $3,000 mark, and XRP nearing $3, as the total crypto market cap swelled past $3.9 trillion.