Binance CEO denies promoting Trump's stablecoin before

Binance CEO Richard Teng denied allegations that the exchange promoted Trump's USD1 stablecoin to secure a presidential pardon for former chief Changpeng Zhao.

Binance CEO Richard Teng dismissed claims that the exchange promoted a Trump-backed stablecoin to secure a presidential pardon for former chief Changpeng Zhao.

The allegations center on a $2 billion investment by Abu Dhabi's state-owned MGX, which was settled using USD1, a stablecoin created by the Trump family's crypto venture, World Liberty Financial.

MGX's investment and the subsequent listing of USD1 by Binance strengthened the stablecoin's market position, leading lawmakers and media reports to suggest that it may have influenced Zhao's pardon.

Speaking to CNBC on Monday, Teng dismissed any preferential treatment, noting that MGX had independently decided to use USD1 for transactions and that other exchanges had already listed the token before Binance.

Binance CEO Richard Teng at the Gulf Binance event. | Source: Bloomberg, via Getty Images

Corruption allegations grow over Binance-Trump ties

According to the Wall Street Journal, Binance not only assisted MGX in the settlement of USD1 but also helped build the stablecoin's underlying technology, citing unnamed sources.

World Liberty Financial benefited significantly from the Binance listing of USD1 and its partnership with PancakeSwap, an online crypto marketplace associated with the exchange.

Senator Elizabeth Warren last month accused Binance and the Trump administration of corruption.

This outspoken crypto critic said that Zhao pleaded guilty to criminal money laundering charges, then promoted and lobbied for Trump's venture before being granted a presidential pardon.

Critics have long questioned World Liberty Financial's open relationship with the White House as it seeks to attract foreign partnerships and investors.

According to the platform's website, DT Marks DeFi LLC and members of the Trump family reportedly receive large revenue shares and hold WLFI tokens that support the company, which is said to have generated 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.

The $2 billion purchase of MGX occurred two weeks before the White House signed a major microchip access agreement with the UAE, raising additional concerns about potential conflicts.

Trump deflected questions about the pardon and the family business.

During a 60 Minutes interview on Sunday, President Trump claimed that despite granting a pardon, he did not know who Zhao was.

When pressed about Zhao's guilty plea to 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 enterprise.