Binance CEO Richard Teng has firmly denied claims that the crypto exchange influenced the rise of a Trump-backed stablecoin to help secure a presidential pardon for former CEO Changpeng Zhao.
Quick Summary – TLDR:
- Richard Teng says Binance had no role in choosing the Trump-linked USD1 token for a $2 billion investment.
- Lawmakers accuse Binance of aiding World Liberty Financial, allegedly benefiting the Trump family.
- Former CEO Changpeng Zhao received a pardon from President Trump after pleading guilty to money laundering.
- Trump and the White House deny involvement in crypto business ties, calling it political persecution.
What Happened?
Reports have raised eyebrows over a high-value investment in Binance settled using USD1, a stablecoin tied to Donald Trump’s family. The investment came shortly before former Binance CEO Changpeng Zhao received a presidential pardon. Allegations suggest that Binance’s listing of the stablecoin may have helped boost its credibility, possibly influencing the decision to pardon Zhao. But Binance’s current CEO, Richard Teng, says that’s not what happened.
Binance’s Role in the USD1 Controversy
Teng told CNBC that Binance was not involved in deciding to use USD1 for the $2 billion investment made by Abu Dhabi’s state-owned MGX fund. He emphasized that the choice was made by MGX alone.
Teng said:
Teng acknowledged Binance’s broader engagement with new crypto projects but denied any preferential treatment for USD1. He also clarified that other exchanges had already listed the token before Binance did.
Political Accusations and Trump Connections
According to reports, Binance allegedly assisted in developing USD1’s tech and facilitated its integration into the MGX transaction. The report also said World Liberty Financial, a Trump family-affiliated company behind the token, benefited significantly from USD1’s listing on Binance and a partnership with PancakeSwap, a crypto marketplace associated with Binance.
U.S. lawmakers, including Senator Elizabeth Warren, have accused Binance and Trump of corruption. She stated:
Trump’s Crypto Pivot and Denial
President Trump has increasingly embraced the crypto sector since returning to office. He’s rolled out new legislation and eased restrictions on platforms like Coinbase and Ripple. However, when asked about Zhao during a “60 Minutes” interview, Trump said he did not know him and dismissed questions by calling the legal case a “Biden witch hunt.”
The White House press secretary also defended the pardon, claiming Zhao had been targeted unfairly, with no allegations of fraud or victims in his case.
Despite Zhao’s 2023 guilty plea and a four-month prison sentence, he still owns a large stake in Binance.
World Liberty Financial’s Profits and White House Proximity
World Liberty Financial has earned hundreds of millions to billions through USD1, backed in part by token holdings reportedly linked to the Trump family and DT Marks DEFI LLC. The company claims Trump and his relatives are not officers or founders, but critics argue that the profits and influence point to a conflict of interest, especially as the group seeks global partnerships.
Interestingly, MGX’s USD1-based investment came two weeks before a major U.S.-UAE chip agreement, raising additional red flags over possible coordination between political and business interests.
Binance Eyes Return to US Market
With Zhao’s legal hurdles now cleared by the pardon, Binance is considering re-entering the U.S. market more aggressively. Currently, its U.S. arm, Binance.US, operates independently and holds a very small share of American Bitcoin trading volume.
Meanwhile, Binance’s native token BNB jumped 8% following the pardon news.
However, political blowback continues. Representative Ro Khanna proposed a bill to bar elected officials from launching or owning cryptocurrencies, calling Zhao’s pardon “blatant corruption.”
Zhao has also fired back. He threatened to sue Senator Warren for defamation, though her legal team dismissed the threat, standing by her statements as accurate and publicly documented.
SQ Magazine’s Takeaway
Honestly, this story has all the elements of a crypto-age political thriller. The combination of a Trump-linked token, a billion-dollar deal, and a high-profile pardon sets off all kinds of alarm bells. I think Richard Teng’s attempt to distance Binance from the token choice makes sense, but the optics are rough. The close timing of investments, partnerships, and policy shifts is hard to ignore. Crypto might be heading mainstream, but stories like this show why trust is still the biggest currency in the game.
