Binance CEO Denies Role in Trump Family’s $2B Stablecoin Deal

Binance CEO Richard Teng has reportedly dismissed claims that the crypto exchange was involved in choosing a stablecoin issued by World Liberty Financial (WLFI), a firm linked to the Trump family, as part of a multibillion-dollar partnership with Abu Dhabi-based MGX.

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Key points:

• Binance CEO Richard Teng denied claims that the exchange influenced the use of USD1, a Trump-linked stablecoin, in a $2 billion deal between WLFI and Abu Dhabi-based MGX.
• U.S. Senators, led by Elizabeth Warren, criticized former President Trump’s pardon of ex-Binance CEO Changpeng Zhao, calling it a signal of leniency toward white-collar offenders.
• Reports suggest Zhao’s pardon followed a lobbying effort tied to Binance, further fueling scrutiny over the crypto exchange’s political and financial influence.

According to a Tuesday report from CNBC, Teng stated that the exchange had no involvement in the decision to utilize USD1, a stablecoin launched by WLFI, in a $2 billion agreement with MGX. His remarks come amid reports and political scrutiny suggesting the exchange’s activities may have influenced President Donald Trump’s decision to pardon former Binance CEO Changpeng “CZ” Zhao.

“First of all, the usage of USD1 [for the] transaction between MGX as a strategic investor into Binance, that was decided by MGX … We didn’t partake in that decision,” Teng stated in a Monday interview with CNBC. The Binance CEO emphasized that the USD1 token had already been listed on several other exchanges prior to its debut on Binance.

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Scrutiny surrounding Zhao’s pardon and Binance’s connections to WLFI is intensifying, as a group of U.S. Senators have accused both Binance and the Trump administration of engaging in corrupt practices.

In an open letter, Senators Elizabeth Warren, Bernie Sanders, Jeffrey Merkley, Chris Van Hollen, Mazie Hirono, Richard Blumenthal, and Jack Reed condemned the pardon, writing that it “sends a message to cryptocurrency executives and other white-collar offenders that the law is irrelevant.” The lawmakers also requested clarification on how President Trump’s decision to pardon Zhao could impact Attorney General Pam Bondi and the Department of Justice’s ability to “hold criminals accountable.”

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Furthermore, reports have surfaced suggesting that Zhao’s pardon followed a lobbying campaign by Binance, which allegedly involved $450,000 in payments to lobbyists linked to former President Trump and an additional $290,000 to Terese Goody Guillen, Zhao’s attorney and a former SEC chair nominee.

As investigations and political debate intensify, both Binance and its leadership remain under heightened scrutiny from regulators and lawmakers alike. The controversy surrounding Zhao’s pardon continues to raise broader questions about the intersection of cryptocurrency, politics, and influence in the U.S. financial system.

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Read More

• Trump Defends CZ Pardon, Denies Knowing Binance Co-Founder
• Warren Fires Back at CZ’s Defamation Threat, Cites DOJ Money Laundering Plea
• Binance CEO Slams FT, Reuters & Forbes for ‘Tinfoil Hat’ Reporting

MICHAELA

Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.