Quick Takeaways
- Binance CEO Richard Teng denied involvement in using Trump’s USD1 stablecoin for a $2 billion MGX deal.
- Lawmakers raised concerns after President Trump pardoned former Binance CEO Changpeng Zhao.
- Allegations link Binance to Trump’s crypto business, though the company rejects the claims.
Binance CEO Rejects Allegations Over Trump-Linked Stablecoin Deal
Binance CEO Changpeng Zhao, not Richard Teng, denied that Binance played any role in choosing USD1 for a $2 billion deal with Abu Dhabi’s MGX.
Teng told CNBC that Binance had no role in choosing USD1, saying the decision was entirely MGX’s.
“The use of USD1 in MGX’s investment deal with Binance was MGX’s decision,” Teng said. “We didn’t partake in that decision.”
Political Scrutiny Intensifies After Trump’s CZ Pardon
The comments come as Binance faces increasing political scrutiny following U.S. President Donald Trump’s pardon of former Binance CEO Changpeng “CZ” Zhao in October.
Trump’s decision reignited allegations of corruption and favoritism, particularly after Eric Trump, co-founder of World Liberty Financial, said the deal would be settled using USD1, potentially generating profits for the Trump family’s crypto venture.
Trump dismissed the controversy in a “60 Minutes” interview, claiming he didn’t personally know Zhao but suggesting the Biden administration “targeted him unfairly.”
Zhao, however, pleaded guilty in 2023 as part of a $4.3 billion settlement with U.S. authorities over Binance’s alleged Anti-Money Laundering (AML) violations.
Binance-Trump Ties Face Further Investigation
Despite Teng’s denial, a Bloomberg report in July claimed that Binance helped develop part of the USD1 billion project’s code, citing an anonymous source.
In response, Zhao suggests pursuing legal action for defamation, because the claims were “mistaken and politically motivated. ”
Meanwhile, several U. S. lawmakers have called for an investigation into the Trump family’s financial connections to Binance.
Connecticut Senator Chris Murphy criticized Binance. US “promoting Trump crypto, ” while Massachusetts Senator Elizabeth Warren alleged deep coordination between Zhao and Trump, has propelled threats of lawsuits from Zhao’s legal team.
Regulatory and Political Pressure Continues
The controversy underlines heightened tensions between crypto business firms and policymakers as the U. forges its digital asset regulations.
Binance continues to operate under strict compliance rules as the Trump administration pushes a pro-crypto agenda to make the U.S. a global hub for blockchain. Teng says Binance stays independent and transparent, keeping clear of political ties.
