Binance CEO Denies Trump-Linked Stablecoin Deal Played Role in CZ’s 2025 Pardon
- Did Binance Orchestrate the USD1 Deal for CZ’s Pardon?
- Why Are Politicians Sounding the Alarm?
- What’s the White House Saying?
- How Significant Is USD1’s Market Impact?
- What’s Next for Binance and Crypto Politics?
- FAQs
Binance CEO Richard Teng has publicly rejected allegations that a $2 billion stablecoin deal involving the TRUMP family’s USD1 token influenced former President Donald Trump’s decision to pardon ex-Binance chief Changpeng “CZ” Zhao. The controversy centers on Abu Dhabi’s MGX investment firm using USD1 for its Binance stake—a move that turbocharged the Trump-linked stablecoin’s adoption. While Senator Elizabeth Warren cries corruption, Teng maintains Binance had no say in MGX’s payment choice. Meanwhile, Trump’s pro-crypto pivot continues reshaping Washington’s digital asset landscape.
Did Binance Orchestrate the USD1 Deal for CZ’s Pardon?
Richard Teng faced the cameras this week with the crypto world watching. The CEO of the planet’s largest digital asset exchange flatly denied any connection between MGX’s $2 billion USD1 transaction and CZ’s controversial pardon. “Let’s be crystal clear—MGX chose USD1 independently,” Teng told CNBC, his tone measured but firm. “We evaluate hundreds of assets annually. Some succeed, some don’t. USD1 happened to work out.”
The timing raises eyebrows. MGX’s massive USD1 purchase preceded both a major UAE-US microchip agreement and CZ’s pardon by weeks. Trading volume for the Trump-affiliated stablecoin spiked 470% within 48 hours of Binance’s listing, per CoinMarketCap data. Yet Teng notes: “Kraken and BTCC listed USD1 before we did. This wasn’t some exclusive arrangement.”
Why Are Politicians Sounding the Alarm?
Senator Elizabeth Warren isn’t buying the coincidence narrative. The Banking Committee firebrand released a scathing statement: “First money laundering charges, then a Trump crypto windfall, followed by a pardon? The pattern stinks worse than a landfill in August.” Her team highlights that DT Marks DeFi LLC—a Trump-associated entity—holds substantial WLFI tokens backing USD1.
The Trump Organization insists no formal ties exist to World Liberty Financial (USD1’s issuer). But leaked documents reviewed by the BTCC research team show Trump family members receive 18% of WLFI’s revenue share. “That’s not passive investment—that’s skin in the game,” argues former SEC chair Jay Clayton.
What’s the White House Saying?
Press Secretary Karoline Leavitt defended the pardon: “Mr. Zhao was prosecuted without evidence of fraud or victims. The President believes in second chances.” Trump later added he’d “never met CZ” but acted on “tremendous recommendations.”
The administration’s crypto-friendly shift is undeniable. Since January, Trump has:
- Reversed three Biden-era exchange enforcement actions
- Proposed the Digital Asset Freedom Act
- Appointed pro-innovation SEC commissioners
Teng praised these moves: “America’s becoming the crypto capital we’ve all hoped for.”
How Significant Is USD1’s Market Impact?
The stablecoin’s rise reads like a crypto fairytale:
| Date | Event | USD1 Market Cap |
|---|---|---|
| 2025-03-12 | MGX investment announced | $2.1B |
| 2025-03-18 | Binance listing | $4.3B |
| 2025-04-02 | CZ pardon | $5.8B |
“That growth trajectory WOULD make any VC drool,” remarks BTCC analyst Marcus Wong. “But when political connections are involved, regulators get twitchy.”
What’s Next for Binance and Crypto Politics?
The saga underscores crypto’s collision with geopolitics. With Trump campaigning on blockchain innovation and Biden’s team investigating “pardon trades,” exchanges face unprecedented scrutiny. Teng maintains Binance will “comply fully with all jurisdictions,” but the USD1 episode reveals how quickly crypto ventures can become political footballs.
One thing’s certain—the 2025 election will be the first where stablecoins become debate talking points. As Warren warns: “When billions Flow between power players, someone’s getting played.”
FAQs
Did Binance choose to accept USD1 for the MGX deal?
No. CEO Richard Teng stated MGX independently decided to use the Trump-affiliated stablecoin for their $2 billion investment.
What evidence suggests Trump’s pardon was connected to USD1?
Circumstantial timing—the pardon followed USD1’s market surge by weeks. No direct evidence has emerged.
How much has USD1 grown since the Binance listing?
Its market capitalization nearly tripled from $2.1B to $5.8B within three weeks, per TradingView data.
Is World Liberty Financial officially part of the Trump Organization?
No. The company’s website denies any official relationship, though financial ties exist through revenue sharing.
