During a recent appearance at the DC Blockchain Summit, Richard Teng, CEO of Binance, took a firm stance against allegations suggesting that the cryptocurrency exchange played a role in facilitating the growth of a Trump-backed stablecoin, USD1. This strong denial comes in the wake of a $2 billion investment made by Abu Dhabi’s state-owned investment firm, MGX, which was purportedly settled using USD1, a stablecoin launched by the Trump family’s World Liberty Financial.
The concerns over these connections intensified after reports speculated that Binance’s involvement with USD1 and the investment from MGX may have contributed to the presidential pardon granted to former CEO Changpeng Zhao, widely known as CZ. Teng refuted these suggestions during an interview with CNBC, asserting that the decision to utilize USD1 for the MGX transaction was entirely made by the investment firm itself, and Binance merely acted as a facilitator in a standard business capacity.
He added that USD1 had been available on other exchanges prior to Binance listing it, emphasizing the company’s routine engagement with innovative projects within the crypto landscape. “Sometimes it works out. Sometimes it doesn’t. In the case of USD1, I’m glad that both parties worked it out,” Teng remarked.
This response follows a report from the Wall Street Journal, which alleged that Binance not only assisted in the MGX transaction but also contributed to the development of the technology underpinning USD1, citing unnamed sources familiar with the situation. The Journal also noted that the partnership between World Liberty Financial and Binance, through its platform Pancake Swap, had significantly benefited the former.
Critics of the arrangement have voiced concerns, particularly from lawmakers such as Senator Elizabeth Warren. The senator has accused Binance and the Trump administration of corruption, underscoring Zhao’s previous guilty plea to charges of money laundering and the apparent facilitation of financial support to a venture associated with Trump.
Meanwhile, World Liberty Financial has raised eyebrows with its business structure that ties back to the Trump administration, including DT Marks DEFI LLC, a firm affiliated with Trump’s family that purportedly profits massively from the stablecoin venture. Although World Liberty Financial’s website asserts that Trump and his associates do not hold operational roles within the firm, critics remain skeptical of the extensive financial ties.
Furthermore, MGX’s $2 billion investment in USD1 tokens raised additional questions, particularly due to its timing—occurring shortly before a significant agreement was struck between the U.S. and the United Arab Emirates concerning microchip access.
Responding to the concerns, Donald Trump Jr., a co-founder of World Liberty Financial, labeled the worries and reports regarding potential conflicts of interest as unfounded. He, along with the firm’s CEO, has maintained that their fathers were not involved in operational aspects of the business.
Zhao had previously stepped down from Binance after admitting guilt in a money laundering case in 2023. Following his pardon, Trump noted that it was done at the behest of various supporters who advocated for Zhao, who he claimed he did not personally know prior to the pardon.
With Trump’s increasing acceptance of the cryptocurrency sector since re-entering the political arena, calling for new legislation and rolling back enforcement from the prior administration, Teng expressed gratitude for the pardon, suggesting it signified a positive move toward establishing the U.S. as the “global crypto capital.”
