- World Liberty Financial denies Zhao’s involvement in foreign deals.
- Zhao claims Wall Street Journal report is part of a smear plot.
- Trump-backed DeFi platform faces scrutiny as Binance denies claims.
World Liberty Financial (WLFI) has firmly denied that Binance founder Changpeng Zhao (CZ) was a foreign “fixer” for a DeFi platform linked to President Donald Trump. According to The Wall Street Journal, the claims suggest that Zhao helped facilitate foreign connections for the project. The company and Zhao immediately denied the claims, saying they were untrue and a smear campaign.
In a social media post, Zak Folkman, co-founder of World Liberty Financial, said the accusations were ridiculous and that Zhao was not involved in WLFI’s business activities abroad. According to The Wall Street Journal, Zhao may have been involved in WLFI’s growth in Pakistan, Abu Dhabi and Kyrgyzstan. However, the details of his role are unclear.
World Liberty Financial and Zhao Under Media Scrutiny
Zhao, who has been under increased media scrutiny, also rejected the accusations. He said that the Wall Street Journal report is part of wider efforts to stop Binance from making the U.S a global crypto hub. Zhao said that a U.S. crypto exchange had received money from a venture capital firm to spread false information. He claimed that the media outlet was engaging in a smear campaign to stifle crypto growth in the U.S.
World Liberty Financial and its founders such as Zach Witkoff, have been under increased media attention. Recently, the company introduced a U.S. dollar-pegged stablecoin, USD1 and used it in a $2 billion deal with Binance. Even though Zhao’s relationship with WLFI is a hot topic, both parties have stated there is no misconduct in their foreign business activities.
Binance’s ‘CZ’ Zhao Faces Challenges
Zhao’s past deals with the U.S. government have worsened concerns. He was released in 2023 after four months in prison for failure to maintain a proper anti-money laundering program. As part of the settlement, Binance, which Zhao founded, was fined $4.3 billion. However, Zhao has maintained that he supports the industry and U.S. efforts to become the crypto capital of the world.
The accusations against Zhao come after a series of challenges the Binance founder has faced in recent months. Moreover, Zhao was reportedly seeking a pardon from President Trump. Meanwhile, Zhao and World Liberty Financial have denied any misconduct in connection with the Trump-backed DeFi project.
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