Binance Denied It Helped Trump’s Crypto Venture—But A $2B Deal And A Presidential Pardon Have Lawmakers Asking Questions
The world’s largest cryptocurrency exchange finds itself at the center of a political firestorm over allegations that it helped boost a Trump family–linked stablecoin just before President Donald Trump pardoned Binance’s founder and former CEO—a sequence of events that Sen. Elizabeth Warren (D-MA) is calling corruption.
Binance CEO Richard Teng pushed back against the accusations last week, according to CNBC, denying that the exchange promoted USD1, a stablecoin created by the Trump family’s crypto venture, World Liberty Financial, ahead of the presidential pardon of Changpeng Zhao.
But the timeline of events has raised eyebrows across Washington and Wall Street alike.
The $2 Billion Deal That Started the Questions
At the heart of the controversy sits a $2 billion investment deal Binance received from MGX Fund Management Ltd., Abu Dhabi’s state-owned investment firm. What made the transaction noteworthy wasn’t just its size—it was that MGX settled the investment using USD1, the stablecoin backed by World Liberty Financial
Forbes, Warren, and Sen. Jeff Merkley (D-OR) said that MGX’s investment and Binance’s subsequent listing of USD1 bolstered the stablecoin’s usage and credibility at a critical moment. Teng responded that the decision to use USD1 for the transaction “was made by MGX, and Binance didn’t partake in that decision,” he told CNBC. He noted that USD1 had been listed on other exchanges before Binance added it to its platform.
However, The Wall Street Journal quoted people familiar with the matter as saying that Binance not only facilitated the settlement using USD1 but also assisted in building the technology behind the stablecoin itself.
The timing of MGX’s USD1 purchase—just two weeks before the White House signed a major agreement with the UAE concerning access to U.S. microchips—has added another layer of scrutiny to the deal.
The Pardon That Raised the Stakes
Zhao stepped down as Binance’s CEO in 2023 after pleading guilty to enabling money laundering through the exchange. He remains the major shareholder of the company despite his legal troubles.
Trump pardoned CZ, stating he did so “at the request of a lot of very good people” and that he knew nothing about him. Teng publicly expressed that the crypto industry was “very thankful” to the president for the pardon.
Warren connected the dots bluntly: CZ first pleaded guilty to a criminal money laundering charge, then “boosted one of Donald Trump’s crypto ventures and lobbied for a pardon,” with the president later doing “his part.”
Follow the Money Back to the Trump Family
World Liberty Financial’s financial structure adds complexity to the controversy. According to the company’s website, Trump-affiliated firm DT Marks DEFI LLC, along with members of the Trump family, receive a major share of the platform’s revenue and holds digital tokens backing the company. This venture has netted the Trump family hundreds of millions to billions in profits, according to Reuters.
World Liberty Financial’s website clarifies that Trump, his family, or members of DT Marks DEFI LLC are not officers, directors, founders, or operators of World Liberty Financial or its affiliates. Donald Trump Jr., a co-founder of World Liberty Financial, and the firm’s CEO, Zach Witkoff, dismissed broader concerns about potential conflicts of interest involving the Trump family, CNBC reported.
BY: Nick Thomas
