Binance CEO Denies Role in Trump Family's USD1 Stablecoin Deal

Key Takeaways:

• Binance CEO Richard Teng denies the exchange's participation in selecting USD1.
• The $2 billion deal with Abu Dhabi-based MGX was announced in March.
• Lawmakers are scrutinizing alleged ties between Binance and the Trump family.

Binance's Official Denial

Richard Teng, CEO of the global cryptocurrency exchange Binance, has reportedly denied allegations that the company played a role in selecting a stablecoin issued by a Trump family-backed crypto business as part of a multibillion-dollar deal. According to a CNBC report, Teng stated that Binance “didn’t partake” in the decision to use USD1, the stablecoin launched by the Trump family’s World Liberty Financial business, for a $2 billion deal with an Abu Dhabi-based company, MGX.

Teng's remarks come amidst increased scrutiny from lawmakers after former US President Donald Trump issued a pardon for ex-CEO Changpeng “CZ” Zhao, leading to accusations of corruption and “pay for play” politics.

“The usage of USD1 for the transaction between MGX as a strategic investor into Binance, that was decided by MGX... We didn’t partake in that decision,” Teng stated, according to CNBC.

Increased Scrutiny and Potential Connections

The initial $2 billion investment by MGX into Binance was announced in March. However, the deal faced additional scrutiny after Eric Trump, a son of the former President and co-founder of World Liberty Financial, indicated that the funding deal would be settled using USD1, allowing the Trump family business to profit from the transaction.

Following Trump’s presidential pardon for CZ on October 23, he claimed in a 60 Minutes interview that he was unfamiliar with the former Binance CEO. The former President suggested that the Justice Department under the Biden administration unfairly targeted Zhao, despite Zhao pleading guilty as part of a $4.3 billion settlement with US authorities regarding Binance's Anti-Money Laundering (AML) program.

Conflicting Reports and Lawmaker Concerns

Despite Teng’s denial, a Bloomberg report from July suggested that Binance was involved in developing some of the underlying code for USD1, citing anonymous sources. In response, Zhao hinted at potential legal action against the news outlet.

US lawmakers have also questioned the Trump family’s alleged involvement with Binance. Senator Chris Murphy of Connecticut noted in October that Binance.US, a separate legal entity, appeared to be “promoting Trump crypto,” shortly after Trump's pardon of Zhao.

Senator Elizabeth Warren of Massachusetts has also raised similar concerns about CZ’s relationship with Trump, triggering further threats of legal action over these claims.