CZ Denies Claims of Business Ties with Trump Family – Here’s Why It Matters for Crypto
Crypto's most prominent CEO just shut down a political rumor with market-moving implications.
The Denial That Echoed
Changpeng 'CZ' Zhao, the founder and former CEO of Binance, issued a firm rebuttal to reports suggesting financial entanglements with the family of former U.S. President Donald Trump. The statement cuts through speculative noise, aiming to quarantine the exchange's brand from partisan U.S. politics. In an industry scrutinized for compliance, perceived alliances can trigger regulatory side-eye faster than a flash crash.
Politics and Protocols Don't Mix
For crypto giants, navigating the geopolitical landscape requires a surgeon's precision. Allegations of ties to powerful political dynasties—true or not—can attract unwelcome attention from legislators and watchdog agencies. CZ's swift clarification acts as a firewall, attempting to separate Binance's operational narrative from domestic U.S. political dramas. It's a reminder that in the eyes of regulators, perception often battles with reality.
The Bigger Picture for Digital Assets
This episode underscores a maturation pain for the entire sector. As crypto integrates with traditional finance, its leaders inevitably brush against established power structures. The need for clear, apolitical communication becomes paramount—not just for credibility, but for survival. Every denied claim is a step toward legitimizing an asset class still fighting for mainstream trust. After all, nothing spices up a quarterly finance report like a dash of political intrigue—just ask any Wall Street bank that's ever hosted a fundraising dinner.
CZ's move is less about a single rumor and more about drawing a line in the sand. In the high-stakes game of global finance, sometimes the most powerful trade is distancing yourself from the right people.
$2B stablecoin payment from Abu Dhabi triggers speculation
The noise started with a $2 billion investment Binance received in March 2025 from MGX, a state-owned investment company in Abu Dhabi.
Instead of wiring the cash directly, MGX paid in USD1, a stablecoin created by World Liberty Financial, a crypto firm launched by Trump’s family. That’s what sparked all the suspicion.
“MGX is the investor. They choose USD1,” CZ said. “My request to them was they pay us in crypto. I don’t want to deal with banks, really.” He said people wrongly thought that accepting USD1 meant he had business with the TRUMP family. “Many people misconstrued that.”
CZ explained that Binance didn’t hold on to the stablecoin.
Instead, it converted it to other assets over time. “Stablecoin is just a currency for payment. Just because I accepted that, it doesn’t mean I invested in the issuer of that.”
David Wachsman, a spokesperson for World Liberty Financial, denied any LINK to the pardon. “WLFI is not a political organization and had zero role in the pardon process. To imply otherwise is dangerous and false.”
Still, the Wall Street Journal later said that Binance also helped build the tech behind USD1, citing unnamed sources.
Asked about why he gave the pardon, Trump said, “A lot of people say that he wasn’t guilty of anything. And so I gave him a pardon at the request of a lot of very good people.”
Lobbyist payments and tokenized stocks return to headlines
At the same time, NBC News reported Binance had hired a lobbying firm called Checkmate Government Relations. It’s run by Charles McDowell, a friend of Donald Trump Jr.
The firm said it was paid $450,000 to lobby both the WHITE House and the Treasury Department, pushing for “executive relief” and policy work related to crypto and financial services.
CZ denied any connection between the lobbying and the pardon. “There is a lot of media saying that there is some deal in place to get me the pardon. As far as I know, that does not exist at all.”
He also said he hasn’t spoken with Trump. “The closest that I got to him was today when he was doing the Board of Peace session. I was in the audience, about 30 to 40 feet away from him.”
While all that’s going on, Binance is looking to bring back tokenized stock trading, a feature it dropped in 2021. These stock tokens are blockchain-based representations of actual shares in companies like Apple or Microsoft, allowing people to buy smaller portions without owning a full share.
A Binance spokesperson allegedly told The Information, “Binance is committed to bridging traditional finance and crypto, expanding user choices while maintaining the highest regulatory standards. Since last year, we started supporting tokenized real-world assets, and we recently launched the first regulated TradFi perpetual contracts settled in stablecoin.”
They added, “Exploring the potential to offer tokenized equities is a natural next step in our mission to bring TradFi and crypto closer together as we continue to actively build infrastructure, partner with traditional institutions, and develop innovative solutions for our users and the industry.”
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