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Binance CEO Richard Teng has dismissed claims that the cryptocurrency exchange played a role in promoting a Trump-linked stablecoin before former CEO Changpeng Zhao (CZ) received a presidential pardon.
The Binance Trump crypto link controversy stems from a $2 billion investment deal between Binance and Abu Dhabi’s MGX, settled using USD1, a stablecoin created by World Liberty Financial, a crypto venture tied to the Trump family.
The transaction, followed by Binance’s listing of USD1, fueled speculation that the deal indirectly benefited Trump-linked interests and may have influenced Zhao’s pardon. However, Teng refuted such claims during a CNBC interview on Monday, insisting Binance did not give USD1 any special treatment.
“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,” — Richard Teng, CEO, Binance, told CNBC.
Teng further noted that USD1 had already been listed on other exchanges before Binance, emphasizing that as the “largest crypto ecosystem in the world,” the company often engages with new projects. “Sometimes it works out. Sometimes it doesn’t. In the case of USD1, I’m glad that both parties worked it out,” he said.
The Binance Trump crypto link issue adds to the growing political and regulatory scrutiny surrounding the exchange and the Trump administration’s growing embrace of cryptocurrency.
Teng’s remarks followed a Wall Street Journal report suggesting Binance not only facilitated the MGX transaction using USD1 but also assisted in building the stablecoin’s underlying technology, citing unnamed sources.
The Journal added that World Liberty Financial saw major benefits after USD1’s listing on Binance and a partnership with PancakeSwap, an online marketplace for crypto tokens associated with Binance.
The Binance Trump crypto link has also drawn criticism from U.S. lawmakers, including Senator Elizabeth Warren, a prominent crypto skeptic and member of the Senate Banking Committee. In a statement last month, Warren accused Binance and the Trump administration of corruption, saying:
“First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon,” — Sen. Elizabeth Warren, Senate Banking Committee.
Zhao, who resigned as Binance’s CEO in 2023 after pleading guilty to enabling money laundering through the exchange, remains its largest shareholder. Binance has not issued an official response to Warren’s claims, and Teng declined further comment on the political implications of the Binance Trump crypto link.
Critics have long questioned World Liberty Financial’s close associations with the Trump family. According to the company’s website, a Trump-affiliated entity, DT Marks DEFI LLC, along with members of the Trump family, holds significant revenue shares and tokens under the World Liberty Financial (WLFI) umbrella. Reports suggest the firm has generated hundreds of millions to billions in profits for Trump-affiliated entities.
However, the site also clarifies that “Trump, his family or any members of the Trump Organization or DT Marks DEFI LLC are not an officer, director, founder, or employee of, or manager, owner or operator of World Liberty Financial or its affiliates.”
The Binance Trump crypto link became even more controversial after a New York Times report revealed that MGX’s $2 billion USD1 purchase occurred two weeks before the White House signed a key semiconductor agreement with the United Arab Emirates, raising concerns about possible diplomatic or financial quid pro quo.
In a separate CNBC interview, Donald Trump Jr., co-founder of World Liberty Financial, denied any wrongdoing, saying media reports exaggerated the situation. He was joined by Zach Witkoff, the firm’s CEO and son of U.S. Special Envoy Steve Witkoff, who stated that their fathers were “not focused on nor directly involved in the business.”
Since his return to the White House, President Donald Trump has made a notable pivot toward crypto-friendly policies. His administration has proposed new legislation to promote digital assets and has reversed previous enforcement actions against major exchanges like Coinbase and Ripple.
Trump defended his decision to pardon Zhao, saying he did so “at the request of a lot of very good people” and claimed to have known nothing about him personally. White House Press Secretary Karoline Leavitt had earlier clarified that Zhao’s conviction occurred under the previous Biden administration “despite no allegations of fraud or identifiable victims.”
Commenting on the broader political environment, Teng said Binance and the wider crypto industry were “very thankful” for the president’s supportive stance, adding that Trump’s policies were positioning the United States as the global crypto capital of the world.
Despite Teng’s assurances, the Binance Trump crypto link continues to raise questions about the intersection of politics, regulation, and global finance — a relationship that may define the next phase of crypto governance in the U.S.
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