- Binance CEO denies involvement in USD1 stablecoin deal amid Trump family links.
- Trump’s pardon for CZ Zhao sparks accusations of corruption and political favoritism.
- US lawmakers call for an investigation into Binance’s ties to the Trump family and the USD1 stablecoin.
Binance CEO Richard Teng has refuted claims that the cryptocurrency exchange selected USD1, a stablecoin produced by a Trump-linked World Liberty Financial, as part of a 2 billion investment with the Abu Dhabi-based entity MGX. The transaction has also been a focus of political corruption, especially following the pardoning of former Binance executive Changpeng (CZ) Zhao by US President Donald Trump.
In a report by CNBC, Teng said that Binance was not involved in the process of deciding and that MGX, the strategic investor in the deal, made the decision without Binance’s input. Exchange was not part of the process. This explanation was provided after lawmakers raised concerns about the connection between the cryptocurrency exchange and the Trump family.
The first amount of $2 billion investment was announced in March, although the deal received greater recognition when Eric Trump, co-founder of World Liberty Financial, said that it would be settled in USD1. This brought up the issue of possible conflict of interest, as the Trump family would make money in the deal with the use of their stablecoin.
Trump’s Pardon Stirs Corruption Concerns in Binance Deal
The transaction also experienced a political twist when president Trump pardoned former Exchange CEO Zhao on October 23. The remission resulted in corruption and pay-for-play politics, particularly in light of the timing of the investment transaction and the supposed implications for the Trump family in the case.
President Trump said in a 60 Minutes interview that he did not know Zhao and indicated the charges against him were being vigorously pursued by the Biden administration. But earlier Zhao was found guilty as a component of a $4.3 billion settlement with the US government concerning the digressions of the Anti-Money laundering program by the company.
Also Read: Will Shiba Inu (SHIB) Regain Its All-Time High? A 2025 Price Outlook
Binance Denies Ties to USD1 Stablecoin Development
A July Bloomberg report suggested that Binance also contributed to the development of the USD1 code. The report indicating the source as anonymous has stated that Binance participated in part of the technical development of the stablecoin. Exchange refuted the claims, indicating a potential defamation lawsuit against Bloomberg.
US legislators have also raised concerns about the possibility of conflicts of interest between cryptocurrency exchange and the Trump family, such as Senator Chris Murphy of Connecticut and Senator Elizabeth Warren of Massachusetts.
Murphy accused the exchange of promoting Trump’s cryptocurrency, and Warren made similar claims. Both senators have demanded additional research into the issue.
Despite Teng’s denial, the investigation into the relationship between Binance, USD1, and the Trump family remains vigorous. The current political and legal issues may have a long-term effect on the exchange and its operations in the US.
Also Read: Bitcoin Price Dips to $100K as ETF Outflows Hit $617M and Market Liquidity Weakens
