In a sharp and deliberate rebuttal, Binance CEO Richard Teng dismissed allegations that the exchange favored USD1, the stablecoin tied to Donald Trump’s family business interests, in the months before former president Trump pardoned Binance founder Changpeng Zhao (CZ). Teng described the narrative of political quid pro quo as “falsehoods,” stating that Binance neither promoted USD1 nor participated in its development.
Teng’s remarks came amid a storm of speculation that the $2 billion investment by Abu Dhabi’s MGX fund into Binance, settled entirely in USD1, may have influenced the timing of Trump’s October pardon of Zhao. The pardon followed a year after Zhao’s resignation and brief prison sentence for violating U.S. anti-money-laundering laws. Critics, including Senator Elizabeth Warren, have pointed to that investment as evidence of favoritism benefiting Trump-linked entities through interest income from unredeemed stablecoin holdings.
Teng Pushes Back Against Allegations
In an interview with CNBC, Teng pushed back on those claims. “The usage of USD1 in terms of the transaction between MGX as a strategic investor into Binance; that was decided by MGX,” he said. “We had no role in that.” The CEO described USD1’s listing on Binance as routine, saying, “USD1 was already listed on other exchanges before it was listed on Binance.”
While no direct evidence of coordination has surfaced, the optics of timing and money have created fertile ground for scrutiny. Binance’s $2 billion position in USD1 represents roughly 90% of the token’s total circulation. The yield from U.S. treasuries backing those tokens, estimated between $60 million and $80 million annually, flows to World Liberty Financial, the Trump-affiliated issuer. For critics, that looks like a backdoor profit to the president’s business circle.
Why It Matters: A Moment That Tests Trust
This episode reaches beyond a single transaction. It cuts into the credibility of how global digital assets intersect with political power.
- For regulators, it raises questions about how concentrated token holdings can carry unseen financial or diplomatic influence.
- For traders and investors, it exposes how closely politics and crypto now intertwine, especially when billions in stablecoins link foreign investment with presidential favor.
The story of Binance and USD1 has become a measure of transparency for an industry long shadowed by secrecy. Teng’s calm, methodical denials aim to draw a line under what he describes as speculation. Yet, congressional voices are preparing inquiries, and public perception remains split between exoneration and suspicion.
For now, Binance faces a test not of liquidity, but of credibility.
