TLDR
- Democratic senators have asked the US Treasury and DOJ to explain Binance’s connection to the Trump family.
- The senators are concerned about a Trump-linked stablecoin being used to fund a $2 billion investment in Binance.
- Binance previously pleaded guilty to anti-money laundering violations, and its founder was sentenced to prison.
- Lawmakers demanded a report on Binance’s plea deal compliance and timeline for exiting the US market.
- The letter also questioned whether Binance discussed a possible pardon for its founder with any US officials.
Democratic senators have asked the US Treasury and Department of Justice to clarify Binance’s links to the Trump family. This action follows reports that Abu Dhabi’s MGX plans to fund a major investment in Binance using a Trump-linked stablecoin. The senators want assurance that Binance complies with US regulations after its past legal violations.
Binance Faces Scrutiny Over Trump Links
Senators Elizabeth Warren and Chris Van Hollen sent a formal letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi. The letter raised concerns about the Trump family’s connection to Binance through World Liberty Financial’s USD1 stablecoin. Reports suggest MGX will use this stablecoin to fund a $2 billion investment in the exchange.
The senators emphasized that Binance previously pleaded guilty to anti-money laundering violations and paid billions in penalties. They also referenced Binance founder Changpeng Zhao’s conviction and prison sentence in the United States. Therefore, they questioned whether a company with that record should operate freely in the US market.
They pointed out that most of the stablecoin’s supply circulates on the BNB Chain, which Binance controls. This deepens concerns about a direct relationship between Binance and Trump-affiliated financial entities, which the senators argued could pose risks to financial oversight and national interests.
Lawmakers Question Binance Plans and Pardons
The senators requested a clear report by May 21 detailing the steps taken to enforce Binance’s compliance with its plea agreement. They also asked for a timeline outlining Binance’s planned exit from the US, as agreed with regulators. Additionally, they urged the agencies to verify if Binance has followed its obligations after the legal settlement.
The lawmakers also want to know whether Binance has sought a pardon for Zhao from any federal agency. They asked if the company discussed its relationship with World Liberty Financial or plans to list USD1 on its platform. These details, they argued, are essential to determine the extent of Binance’s US activities and political ties.
They warned that expanding the exchange in the US could undermine efforts to enforce federal financial regulations. Since Binance has a history of legal violations, they stressed the need for strict oversight. The senators believe full transparency is critical given the potential involvement of political figures.
Concerns Over Stablecoin Use in Foreign Investment
MGX’s reported use of the USD1 stablecoin to fund an exchange investment has intensified scrutiny from Senate Democrats. They highlighted that World Liberty Financial, which issues USD1, directly connects to the Trump family. This association prompted lawmakers to question whether US policy favors politically connected entities.
The letter expressed concern that Binance might gain a strategic advantage through its ties to politically influential figures. Lawmakers demanded whether WLFI or its affiliates have attempted to list USD1 on the exchange. They also asked whether the stablecoin’s presence on the BNB Chain signals deeper coordination.
