TLDR:
- Binance rejects favoritism claims over USD1 stablecoin amid CZ pardon.
- CEO Richard Teng denies Binance’s influence in $2B USD1 deal with MGX.
- Richard Teng clarifies Binance’s role in USD1 listing, denies political ties.
- Lawmakers probe Binance, Trump family connections in USD1 deal.
- CZ’s pardon raises questions about Binance, Trump’s crypto ties.
Binance CEO Richard Teng strongly rejected allegations that the cryptocurrency exchange provided preferential treatment to World Liberty Financial(USD1). The claims surfaced amid the pardon of Binance founder Changpeng Zhao, known as CZ, who had pleaded guilty to money laundering charges. The controversy centers around a $2 billion deal between Binance and Abu Dhabi’s MGX investment firm, which used USD1 for the transaction.
Binance’s Role in USD1 Listing and MGX Deal
Binance’s involvement with USD1 and the MGX deal has sparked controversy due to the timing of events. Critics argue that the exchange’s decision to list USD1, backed by the Trump family’s World Liberty Financial, helped increase the stablecoin’s credibility and usage. The move occurred shortly before CZ’s presidential pardon, fueling suspicions about the connection between the listing and the pardon. However, Richard Teng, in a recent CNBC interview, denied these claims.
Teng clarified that Binance did not influence MGX’s decision to use USD1 for the transaction. He stated that MGX made the choice as the investor and Binance listed the coin after it had been added to other exchanges. He also emphasized that, as the world’s largest crypto exchange, Binance regularly engages with new projects, and sometimes these collaborations succeed, while at other times they do not.
Scrutiny from Lawmakers and Trump Family Ties
The timing of the $2 billion USD1 deal raised eyebrows, particularly after the announcement of President Trump’s pardon for CZ. Some critics argue that the agreement may have contributed to securing the pardon. Senator Elizabeth Warren, a vocal critic of the crypto industry, has accused Binance and the Trump administration of corruption. She pointed to CZ’s criminal conviction and subsequent boost to the Trump family’s crypto venture as part of a possible political deal.
World Liberty Financial’s close ties to the Trump family have further fueled skepticism. The company’s website indicates that Trump-affiliated entities benefit significantly from the venture. However, the website also clarifies that Trump or his family members are not directly involved in the operation of World Liberty Financial. Despite this, the connections continue to spark controversy, especially as lawmakers scrutinize the situation.
Teng maintained that Binance’s listing of USD1 was in line with the company’s regular business practices. He further noted that Binance had not been directly involved in creating the stablecoin’s technology, despite previous reports suggesting such involvement. The CEO also reiterated that the crypto industry was grateful for Trump’s pardon, which he believes supports the growth of crypto in the United States.
Trump’s Role in Crypto and the Pardon
The pardon of CZ came after months of legal battles and scrutiny over Binance’s operations. Following the legal proceedings, President Trump issued the pardon, claiming that CZ’s prosecution was politically motivated. Trump also mentioned that he received requests from various people to pardon the Binance founder. The pardon has raised questions about the relationship between Binance, the Trump administration, and the wider crypto market.
Since taking office, Trump has shown a growing interest in cryptocurrency, proposing new laws and rolling back regulatory actions against crypto companies, such as Coinbase and Ripple. Binance CEO Richard Teng expressed his gratitude for the pardon and emphasized the importance of such support for the broader crypto industry. He believes the United States can become the global hub for crypto development, a sentiment Trump has echoed in recent speeches.
