Binance CEO denies company-backed Trump-linked crypto projects before CZ pardon

Binance CEO Richard Teng dismissed claims that the cryptocurrency exchange contributed to the growth of the Trump-backed stablecoin before former CEO Zhao Changpeng received a presidential pardon.

The allegations in question relate to a $2 billion investment that Binance received from Abu Dhabi’s state-owned investment company MGX. The transaction was settled using USD1, a stablecoin created by the Trump family’s crypto venture, World Liberty Financial.

MGX’s investment and Binance’s subsequent listing of USD1 on the exchange helped increase the use and credibility of the stablecoin, and some lawmakers and media reports suggested that this may have influenced the pardon of Mr. Zhao, commonly known as CZ.

However, in an interview with CNBC on Monday, Teng rejected the idea that Binance, the world’s largest cryptocurrency company, was giving USD1 any preferential treatment.

“First of all, it is a decision of MGX to use USD 1 (in a transaction) with Binance as a strategic investor…We are not involved in that decision,” Teng said.

He pointed out that USD1 was already listed on other exchanges before Binance, adding that as the “world’s largest crypto ecosystem,” the company is regularly working on promising new projects.

“Sometimes it works out, and sometimes it doesn’t. In the case of USD1, I’m glad that both sides were able to work it out.”

Teng’s denial comes after The Wall Street Journal reported last week, citing unnamed sources familiar with the matter, that Binance not only facilitated settlement of MGX’s investments using USD1, but also helped build the technology behind the stablecoin.

The publication also previously noted that World Liberty Financial benefited significantly from the listing of its USD1 token on Binance and its partnership with PancakeSwap, an online cryptocurrency marketplace said to be affiliated with Binance.

Meanwhile, CZ’s pardon and Binance’s ties to Trump-linked World Liberty Financial continue to come under increasing scrutiny from opposition leaders on Capitol Hill.

Among the most prominent voices is Sen. Elizabeth Warren, ranking member of the Senate Banking, Housing, and Urban Affairs Committee, who has accused Binance and the Trump administration of corruption.

“First, Zhao Changpeng pled guilty to criminal money laundering charges. He then backed one of Donald Trump’s crypto businesses and lobbied for a pardon,” the vocal cryptocurrency industry critic said in a statement last month, after which the president “did his part.”

Binance did not immediately respond to a request for comment. According to Teng, CZ stepped down as Binance’s chief executive officer in 2023, but remains a major shareholder in the company.

Critics have long questioned World Liberty Financial’s open relationship with the Trump administration as it seeks new partners and investors overseas.

According to World Liberty Financial’s website, a Trump-linked company called DT Marks DEFI LLC, along with members of the Trump family, receives the majority of the platform’s revenue and holds digital tokens backing the company known as WLFI. The company reportedly generated hundreds of millions to billions in profits for the Trump family.

However, it also said that neither Mr. Trump, his family, nor members of the Trump Organization or DT Marks DEFI LLC are “officers, directors, founders, or employees of, or managers, owners or operators of, World Liberty Financial or any of its affiliates.”

MGX’s purchase of $2 billion in USD1 tokens also raised eyebrows after a New York Times report in September noted that it was made two weeks before the White House signed a major deal with the UAE for access to hundreds of thousands of US-made microchips.

Donald Trump Jr., the U.S. president’s eldest son and co-founder of World Liberty Financial, dismissed widespread concerns about reporting and potential conflicts of interest in a conversation with CNBC last month.

He was joined by CEO Zach Witkoff, son of US envoy to the Middle East Steve Witkoff, who said his fathers were not focused on or directly involved in the business.

Chao was forced to resign from his role at Binance in 2023 after pleading guilty to enabling money laundering through the cryptocurrency exchange.

White House press secretary Caroline Levitt said in an Oct. 23 statement that Zhao was charged under the Biden administration “despite no allegations of fraud or identifiable victims.”

President Trump later pardoned Mr. Zhao “at the request of a lot of very good people” and said he knew nothing about Mr. Zhao.

Since returning to office, Trump has actively embraced the crypto sector, proposing new crypto legislation while coinbase Ripple during the last administration.

In his speech on Monday, Teng said Binance and the crypto industry are “extremely grateful” to the president for pardoning CZ and for sending a signal that the United States will become the “global crypto capital of the world.”