Binance CEO Denies Helping Trump-Linked Crypto Venture Ahead of CZ’s Presidential Pardon
Binance CEO Richard Teng has strongly denied allegations that the world’s largest cryptocurrency exchange aided in promoting a Trump-affiliated stablecoin prior to former CEO Changpeng “CZ” Zhao’s presidential pardon.
The controversy centers on a $2 billion investment Binance received from Abu Dhabi’s sovereign wealth fund, MGX, which was reportedly settled using USD1, a stablecoin developed by World Liberty Financial, a crypto venture tied to the Trump family. Critics and lawmakers have speculated that the transaction and Binance’s subsequent listing of USD1 may have influenced Zhao’s pardon.
Teng refuted the claims, clarifying that Binance had no role in selecting USD1 for the transaction. “The decision to use USD1 was made entirely by MGX. Binance did not participate in that choice,” he said, adding that USD1 had already been listed on multiple exchanges prior to Binance. As the “largest crypto ecosystem globally,” Teng noted that the company frequently engages with emerging projects, saying, “Sometimes these partnerships succeed, sometimes they don’t — in this case, both sides benefited.”
The Wall Street Journal recently reported that Binance may have helped facilitate the USD1 transaction and even contributed to its underlying technology, citing unnamed sources. The report also suggested that World Liberty Financial benefited significantly from USD1’s listing on Binance and its partnership with PancakeSwap, a decentralized crypto marketplace.
Meanwhile, scrutiny continues to grow around Zhao’s pardon and Binance’s connections to the Trump-linked venture, with lawmakers such as Senator Elizabeth Warren accusing both parties of potential corruption and political favoritism. “First, CZ pleaded guilty to a money laundering charge. Then he backed one of Trump’s crypto ventures and lobbied for a pardon — and the President delivered,” Warren stated last month.
Additional controversy has emerged around World Liberty Financial’s ownership structure. According to the company’s website, DT Marks DEFI LLC, a Trump-affiliated firm, along with members of the Trump family, holds a significant revenue share and token ownership stake (WLFI) — profits that may total in the hundreds of millions to billions. However, the firm also claims that neither Donald Trump, his family, nor members of the Trump Organization serve as executives, founders, or operational leaders.
Concerns deepened after MGX’s $2 billion purchase of USD1 tokens took place just two weeks before a major U.S.–U.A.E. technology agreement granting the Emirates access to advanced American microchips, as reported by the New York Times.
In a separate interview last month, Donald Trump Jr., co-founder of World Liberty Financial, and Zach Witkoff, the company’s CEO and son of U.S. envoy Steve Witkoff, dismissed any allegations of political conflict, stating that their fathers were not directly involved in company operations.
Following his 2023 resignation and conviction for money laundering violations, CZ was later pardoned by President Trump, who claimed he acted “at the request of many respected individuals.”
Since returning to office, Trump has championed cryptocurrency adoption, easing regulatory pressure and proposing pro-crypto legislation aimed at making the U.S. the “global capital of digital finance.”
Speaking on Monday, Teng expressed gratitude toward the administration, saying that Binance and the broader crypto industry were “thankful for the President’s leadership and his commitment to making the United States a hub for blockchain innovation.”
