Binance CEO Refutes Claims of Promoting Trump Stablecoin for Pardon

Binance's CEO, Richard Teng, has denied allegations that the exchange promoted a stablecoin backed by Donald Trump to secure a presidential pardon for its former chief, Changpeng Zhao.

Key Takeaways:

Richard Teng, CEO of Binance, denied claims of promoting a Trump-backed stablecoin for a presidential pardon.
Allegations involve a $2 billion investment in USD1, a stablecoin by World Liberty Financial.
Senator Elizabeth Warren accused Binance and Trump of corruption amid Zhao’s criminal background.
Trump claimed ignorance of Zhao’s identity during an interview, while also defending the pardon.
Binance is exploring strategies to re-enter the US market after Zhao's clemency.

Binance CEO Refutes Claims of Promoting Trump Stablecoin for Pardon

These allegations arise from a $2 billion investment by Abu Dhabi’s state-owned MGX, which was settled using USD1, a stablecoin developed by World Liberty Financial, a cryptocurrency venture linked to the Trump family.

The involvement of MGX and Binance's subsequent listing of USD1 bolstered the stablecoin's market position, leading lawmakers and media outlets to suggest possible connections to Zhao's pardon.

In an interview with CNBC on Monday, Teng rejected any claims of preferential treatment, emphasizing that MGX independently chose to use USD1 for the transaction and that other exchanges had previously listed the token before Binance did.

Binance CEO Refutes Claims of Promoting Trump Stablecoin for Pardon

Growing Corruption Allegations Regarding Binance and Trump Connections

Recent reports from the Wall Street Journal suggest that Binance not only facilitated MGX's USD1 settlement but also reportedly contributed to the development of the stablecoin’s underlying technology, according to unnamed sources.

World Liberty Financial has benefitted considerably from USD1’s listing on Binance and its partnership with PancakeSwap, a crypto marketplace associated with the exchange.

Senator Elizabeth Warren has accused both Binance and the Trump administration of corruption. She alleges that Zhao, pleading guilty to criminal charges related to money laundering, boosted Trump’s venture while lobbying for clemency, which the President ultimately granted.

Critics have cast doubt on World Liberty Financial's known ties to the White House while it seeks international partners and investors. The platform states that Trump family members and DT Marks DEFI LLC receive significant revenue shares and hold WLFI tokens that reportedly generated substantial profits.

However, the website clarifies that Trump and his family members are not executives or managers of World Liberty Financial.

The $2 billion purchase by MGX took place two weeks prior to the White House signing a significant microchip access agreement with the UAE, raising further concerns over possible conflicts of interest.

Trump Addresses Questions About Pardon and Family Business

In a recent interview on 60 Minutes, President Trump claimed he was unaware of who Zhao was, despite having granted him a pardon.

When questioned about Zhao’s guilty plea related to anti-money laundering violations, Trump referred to it as a “Biden witch hunt,” asserting he was “too busy” to be informed about Binance's dealings with his family business.

Trump maintained that his sons manage their crypto venture on their own, without government interference.

White House Press Secretary Karoline Leavitt supported the pardon in October, asserting that Zhao faced prosecution without accusations of fraud or identifiable victims.

Trump has increasingly engaged with the cryptocurrency sector, proposing new legislation and reversing penalties against exchanges like Coinbase and Ripple.

Zhao had resigned from Binance in 2023 after admitting guilt in connection with money laundering through inadequate regulatory controls. He served four months in prison before receiving clemency.

Teng expressed gratitude toward the pardon on Monday, highlighting Trump’s ambition to position America as the “global crypto capital.”

Binance Aims to Re-establish US Market Presence

Following Zhao's pardon, Binance is considering strategies to re-enter the US market. The exchange is weighing whether to integrate its separate US affiliate into its global operations or to allow direct access for American users.

Currently, Binance operates Binance.US as an independent entity, which captures less than 1% of the Bitcoin volume in the US, in stark contrast to nearly 40% of the total volume for its international platform.

Legal experts indicate that the pardon lifts obstacles that have kept Zhao sidelined since his guilty plea in 2023.

Following the pardon, Binance’s native token, BNB, experienced an 8% surge.

In light of growing discontent among certain regulators, Representative Ro Khanna has proposed legislation to prohibit elected officials from owning or launching cryptocurrencies, labeling Zhao's pardon as “blatant corruption.”

Zhao has expressed frustration over the ongoing allegations. On October 30, he threatened to initiate a defamation lawsuit against Warren due to her criticisms.

Nonetheless, Warren's legal representative dismissed this threat, maintaining that her statements regarding his criminal conviction were accurate and well-documented.