Prior to CZ's pardon, the CEO of Binance denies promoting Trump Stablecoin.
 |
| Binance CEO Richard Teng at Gulf Binance Event. | Source: Bloomberg on Images |
Prior to CZ's pardon, the CEO of Binance denies promoting Trump Stablecoin.
 |
| Source: Cryptoview |
Richard Teng, the CEO of Binance, denied rumors that the exchange boosted a stablecoin supported by Trump in order to get former CEO Changpeng Zhao a presidential pardon.
A $2 billion investment from Abu Dhabi's state-owned MGX is at the heart of the accusations, and it was paid with USD1, a stablecoin developed by World Liberty Financial, the Trump family's cryptocurrency business.
Legislators and media outlets have suggested that Zhao's pardon may have been influenced by the stablecoin's improved market position as a result of MGX's investment and Binance's subsequent listing of USD1.
Teng denied any preferential treatment in an interview with CNBC on Monday, pointing out that other exchanges had listed the token before Binance and that MGX had independently chosen to use USD1 for the transaction.
There are more corruption charges pertaining to Binance's ties to Trump.
Citing unnamed sources, the Wall Street Journal claims that Binance not only helped MGX settle for USD 1 but also contributed to the development of the stablecoin's underlying technology.
The listing of USD1 on Binance and its collaboration with PancakeSwap, an online cryptocurrency marketplace connected to the exchange, greatly benefited World Liberty Financial.
Last month, Senator Elizabeth Warren accused the Trump administration and Binance of corruption.
The outspoken critic of cryptocurrency claimed that after entering a guilty plea to criminal money laundering charges, Zhao supported Trump's business and pleaded for clemency before the president granted it.
As it looks for international partners and investors, World Liberty Financial's open ties to the White House have long been questioned by critics.
The platform's website claims that Trump family members and DT Marks DEFI LLC own WLFI tokens and receive significant revenue shares in support of the business, which is rumored to have made hundreds of millions to billions of dollars in profits.
The website makes it clear, though, that Trump, his family, and connected companies are not World Liberty Financial's officers, directors, founders, or managers.
Two weeks prior to the White House signing a significant microchip access agreement with the United Arab Emirates, MGX made a $2 billion USD purchase, which sparked further worries about possible conflicts.
Trump Brushes Off Inquiries About Family Business and Pardons
Despite having granted the pardon, President Trump stated in a Sunday 60 Minutes interview that he had no idea who Zhao was.
Trump claimed he was "too busy" to be aware of Binance's $2 billion deal with his family business and referred to Zhao's guilty plea for breaking anti-money laundering laws as a "Biden witch hunt" when questioned about it.
The president demanded that his sons operate their cryptocurrency company on their own, free from interference from the government.
In October, White House press secretary Karoline Leavitt defended the pardon, claiming that Zhao was not charged with fraud or identifying any victims.
Since then, Trump has embraced the cryptocurrency industry, reversing enforcement actions against exchanges like Coinbase and Ripple and proposing new legislation.
After entering a guilty plea to facilitating money laundering through insufficient anti-money laundering controls, Zhao left Binance in 2023.
Before being granted clemency, he was imprisoned for four months.
Teng stated on Monday that Trump's goal of making America the "global crypto capital" and the pardon had made the industry "very thankful."
Binance Aims for a US Market Comeback
After Zhao's pardon, Binance is considering its options for reentering the US market. It is debating whether to permit direct American access or combine its independent US affiliate into global operations.
Less than 1% of US Bitcoin volume is currently captured by the exchange, which runs Binance.US as a structurally independent entity. In contrast, its international platform accounts for nearly 40% of global Bitcoin volume.
Legal professionals attest that the pardon eliminates the obstacles that have prevented Zhao from acting since his guilty plea in 2023.
After the pardon was announced, Binance's native token, BNB, increased by 8%.
Representative Ro Khanna called Zhao's pardon "blatant corruption" and proposed legislation to prohibit elected officials from owning or launching cryptocurrencies in response to the growing discontent among some regulators.
Zhao seems to be growing tired of the accusation as well. Due to Warren's criticism, Zhao threatened to sue her for defamation back on October 30.
Warren's lawyer, however, later denied the threat, claiming that her remarks regarding his criminal conviction were factually correct and backed up by open records.
Comments