Binance CEO Richard Teng rejected claims that the exchange boosted a Trump-backed stablecoin to secure a presidential pardon for former chief Changpeng Zhao.
The allegations center on a $2 billion investment from Abu Dhabi’s state-owned MGX, settled using USD1, a stablecoin created by World Liberty Financial, the Trump family’s crypto venture.
MGX’s investment and Binance’s subsequent listing of USD1 strengthened the stablecoin’s market position, prompting lawmakers and media reports to suggest this may have influenced Zhao’s pardon.
Speaking to CNBC on Monday, Teng dismissed any preferential treatment, noting MGX decided independently to use USD1 for the transaction and that other exchanges had already listed the token before Binance.
Binance CEO Richard Teng at Gulf Binance Event. | Source: Bloomberg on GettyImagesCorruption Allegations Mount Over Binance-Trump Ties
According to Wall Street Journal, Binance not only facilitated MGX’s USD1 settlement but also helped build the stablecoin’s underlying technology, citing anonymous sources.
World Liberty Financial gained significantly from USD1’s Binance listing and a partnership with PancakeSwap, an online crypto marketplace linked to the exchange.
Senator Elizabeth Warren accused Binance and the Trump administration of corruption last month.
The vocal crypto critic said Zhao pleaded guilty to criminal money laundering charges, then boosted Trump’s venture and lobbied for clemency before the president obliged.
Critics have long questioned World Liberty Financial’s open connections to the White House as it pursues overseas partnerships and investors.
According to the platform’s website, DT Marks DEFI LLC and Trump family members reportedly receive major revenue shares and hold WLFI tokens backing the company, which is said to have netted hundreds of millions to billions in profits.
However, the site clarifies that Trump, his relatives, and affiliated entities are not officers, directors, founders, or managers of World Liberty Financial.
MGX’s $2 billion USD1 purchase occurred two weeks before the White House signed a major microchip access agreement with the UAE, raising additional concerns about potential conflicts.
Trump Dismisses Questions About Pardon and Family Business
During a 60 Minutes interview on Sunday, President Trump claimed he didn’t know who Zhao is, despite having granted the pardon.
When pressed about Zhao’s guilty plea for violating anti-money laundering laws, Trump called it a “Biden witch hunt” and said he was “too busy” to know about Binance’s $2 billion deal with his family’s venture.
The president insisted his sons run their crypto business independently without government involvement.
White House press secretary Karoline Leavitt defended the pardon in October, stating that Zhao was prosecuted without any allegations of fraud or identifiable victims.
Trump has since embraced the crypto sector, proposing new legislation while reversing enforcement actions that targeted exchanges like Coinbase and Ripple.
Zhao stepped down from Binance in 2023 after pleading guilty to enabling money laundering through inadequate anti-money laundering controls.
He served four months in prison before receiving clemency.
Teng said Monday the industry felt “very thankful” for the pardon and Trump’s vision of making America the “global crypto capital.”
Binance Plans US Market Return
Binance is exploring options to re-enter the US market following Zhao’s pardon, weighing whether to consolidate its separate US affiliate into global operations or allow direct American access.
The exchange currently operates Binance.US as a structurally independent entity, capturing less than 1% of US Bitcoin volume, compared to nearly 40% globally for its international platform.
Legal experts confirm the pardon removes barriers that had sidelined Zhao since his 2023 guilty plea.
BNB, Binance’s native token, surged 8% following news of the pardon.
Given the growing dissatisfaction from some regulators, Representative Ro Khanna proposed legislation to ban elected officials from owning or launching cryptocurrencies, calling Zhao’s pardon “blatant corruption.”
Zhao also appears to be getting enough of the allegation. Back on October 30, Zhao threatened to file a defamation lawsuit against Warren over her criticism.
However, Warren’s attorney later dismissed the threat, insisting her comments about his criminal conviction were factually accurate and supported by public records.
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