Teng clarifies Binance had no role in selecting USD1 for a $2 billion investment amid growing political scrutiny.
Binance CEO Richard Teng has firmly denied claims that the global crypto exchange was involved in promoting or selecting the Trump family-backed stablecoin, USD1, in a recent multibillion-dollar deal. The statement follows a wave of allegations linking Binance, World Liberty Financial, and political figures to questionable financial coordination.
Binance Distances Itself from USD1 Transaction
Speaking to CNBC, Teng clarified that Binance “didn’t partake” in the decision to use USD1—a stablecoin launched by World Liberty Financial, co-founded by Eric Trump—for a $2 billion transaction between Binance and Abu Dhabi-based investor MGX.
“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 said.
The deal, originally announced in March, aimed to strengthen Binance’s strategic partnerships in the Middle East. However, after reports surfaced linking the Trump family’s business interests to the transaction, the exchange faced intensified public and political scrutiny.
Political Reactions and Legal Tensions
The controversy grew after President Donald Trump pardoned former Binance CEO Changpeng “CZ” Zhao on October 23, following his guilty plea in a $4.3 billion U.S. regulatory settlement. Critics accused the administration of “pay-for-play” politics, suggesting the pardon and the USD1 deal were intertwined.
President Trump later claimed in a televised interview that he “didn’t know” who Zhao was and denied any political motive behind the pardon.
Despite Teng’s denial, a July Bloomberg report alleged that Binance may have developed parts of the USD1 code, citing anonymous sources. The report prompted Zhao to hint at possible legal action for defamation against the publication.
Lawmakers Question Trump-Binance Ties
U.S. lawmakers have since called for further investigation. Senator Chris Murphy alleged that Binance.US was “promoting Trump crypto,” while Senator Elizabeth Warren echoed concerns about potential links between Zhao and the Trump administration.
Binance has repeatedly denied any political or financial coordination with Trump-linked entities, reaffirming that its operations remain independent of any government or political influence.
The exchange continues to maintain that the decision to use USD1 was solely that of MGX, not Binance — as it works to distance itself from political controversy and reinforce transparency in its international dealings.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.