TL;DR
- Binance CEO denies promoting Trump’s stablecoin.
- The allegations involve a $2 billion investment in MGX.
- Senator Elizabeth Warren denounced these events as corruption.
Binance CEO Richard Teng rejected claims that the exchange boosted a Trump-backed stablecoin to secure a presidential pardon for former CEO Changpeng Zhao. The controversy surrounds a $2 billion investment from Abu Dhabi’s state-owned MGX, executed using USD1, a stablecoin created by World Liberty Financial, the Trump family’s crypto venture.
Teng told CNBC that MGX chose to use USD1 independently and that several other exchanges had already listed the token prior to Binance. He emphasized that the exchange did not provide any preferential treatment and that its actions followed standard listing procedures.
Rising scrutiny over Binance-Trump connections
Reports from Wall Street Journal suggest Binance facilitated MGX’s USD1 settlement and assisted in building the token’s underlying technology, according to anonymous sources. The listing on Binance and a partnership with PancakeSwap contributed to increased adoption and trading volume for USD1.
Senator Elizabeth Warren publicly accused Binance and the Trump administration of corruption, noting that Zhao pleaded guilty to criminal money laundering, supported Trump’s venture, and lobbied for clemency before receiving a pardon.
Public records indicate that DT Marks DEFI LLC and Trump family members reportedly receive major revenue shares and hold WLFI tokens, though the Trump family does not hold officer or management roles in World Liberty Financial. MGX’s USD1 purchase occurred shortly before a White House microchip agreement with the UAE, raising concerns about possible conflicts of interest.
President Trump addressed the situation in a 60 Minutes interview, claiming he was unaware of Zhao and describing the matter as a “Biden witch hunt.” He insisted his sons operate the crypto business independently and defended the clemency, while White House press secretary Karoline Leavitt highlighted that Zhao’s prosecution involved no allegations of fraud or identifiable victims.
