Binance CEO Richard Teng swatted away accusations Thursday that the cryptocurrency exchange had any hand in promoting a Trump-backed stablecoin to secure a presidential pardon for its former leader. The claims? Pure fiction, according to Teng. No games, no schemes, no secret handshakes.
“We didn’t boost USD1,” Teng stated bluntly during a CNBC interview. Allegations had swirled that Binance somehow engineered a sweetheart deal involving the Trump family’s World Liberty Financial and their stablecoin USD1. Nice theory. Too bad it’s nonsense.
The controversy centers around a $2 billion investment from Abu Dhabi’s state-owned MGX fund into Binance. Part of that deal happened to use USD1 tokens – a coincidence that conspiracy theorists couldn’t resist connecting to former CEO Changpeng Zhao’s legal troubles.
Teng clarified that MGX made its own decision to use USD1. Not Binance’s call. Period.
The Wall Street Journal had previously reported that Binance helped develop technology for USD1 and facilitated the MGX investment using the token. Critics suggested this boosted the stablecoin’s reputation and market position just as pardon discussions were happening. Convenient timing, right?
Wrong, says Teng. Binance routinely engages with promising crypto projects. Nothing special happened here. The exchange’s relationship with PancakeSwap, which partnered with World Liberty Financial, follows standard industry practice.
“We explore strategic investments and engagements regularly,” Teng explained. “But this particular transaction was decided by other parties.”
The accusations touch a nerve at Binance, which has worked to rehabilitate its image following regulatory challenges. The speculation intensified after Trump cited the pardon as addressing political persecution in the cryptocurrency sector. The suggestion that it would manipulate markets to secure favorable treatment for its former CEO struck at the heart of its credibility. After all, Zhao had pleaded guilty to money laundering before his resignation as CEO in 2023.
For now, Teng’s message is crystal clear: Binance didn’t play favorites with Trump’s token. No backdoor deals. No special treatment. Just business as usual in the wild world of crypto.
