Binance Accused of Underlying Trump-Tied Stablecoin Transactions
According to a March 9 Bloomberg report citing three sources familiar with the matter, cryptocurrency exchange Binance allegedly helped create and promote the USD$1 stablecoin issued by World Liberty Financial (WLF), a crypto entity linked to former US President Donald Trump.
WLF’s USD$1 stablecoin was launched on March 4. The report indicates Binance also played a significant role in the largest transaction involving this stablecoin.
Separately, on March 12, Abu Dhabi-based investment firm MGX announced a $2 billion investment in Binance in “then-unnamed” stablecoins, according to reports. WLF co-founder, Eric Trump, stated in May that USD$1 would be used to settle this investment.
The report further claims that as of March 9, 90% of the USD$1 coins used in the MGX transaction remained within Binance-controlled wallets, potentially yielding substantial interest for WLF and its associates.
The deep connection between the global crypto powerhouse Binance and a firm with direct ties to the US president raises questions about potential conflicts of interest and the leveraging of political influence for business advantage. Neither Binance nor World Liberty Financial responded to a request for comment from Cointelegraph as of press time.
CZ Zhao Seeks Trump’s Pardon after Prison Sentence
Binance’s co-founder and former CEO, Changpeng “CZ” Zhao, pleaded guilty in 2023 to one felony count related to violating the US Bank Secrecy Act and Anti-Terrorist Financing Act, part of a broader settlement with US authorities. Although Zhao completed a four-month prison sentence last July under a plea agreement, he publicly expressed in May that he was seeking a presidential pardon from Trump.
Publication at time indicated Zhao had not publicly commented on the latest report concerning WLF. A presidential pardon could potentially permit Zhao to assume leadership or operational duties within a US regulated crypto company.
Related: CZ Seeks Trump Pardon After Serving Binance Sentence
Truman Administration’s Crypto Ventures Face Congressional Scrutiny
US lawmakers, particularly Republican House leaders, have scrutinized Trump’s crypto activities long before his inauguration, given his campaign pledges targeting crypto industry friendliness.
WLF and its USD$1 stablecoin represent one facet of these connections, alongside Trump’s launch of his Official TRUMP memecoin and donations sourced from crypto executives who backed his campaign.
The Bloomberg report surfaces as House Republicans are poised to debate three distinct crypto legislative bills, including proposed measures to regulate payment stablecoins within the United States.
The GENIUS Act — named after one of Trump’s social media posts — has cleared the Senate. Congressional sources report it is also likely to undergo a House vote shortly.
Initially stymied in the Senate by Democratic objections citing Trump’s involvement, the bill advanced with bipartisan backing. The fate in the Republican House, holding a narrow majority, remains uncertain. Trump has publicly signaled willingness to sign the bill immediately post-passing, even if structurally unchanged.
Magazine: Trump’s Crypto Ventures: A Wild Ride of Allegations
