Binance CEO Responds to Trump's Stablecoin Claims

Binance CEO Refutes Accusations About Trump's Stablecoin

5 November 2025 at 08: 15

Reading time: 3 minutes

Richard Teng, the Chief Executive Officer Binance, the global cryptocurrency exchange, has recently responded strongly to allegations that the company was involved in selecting a stablecoin issued by a Trump family-backed crypto firm. According to a CNBC report on Tuesday, Teng stated that Binance "played no role" in the decision to list World Liberty Financial's stablecoin, USD1, in a $2 billion deal with Abu Dhabi-based MGX.

This statement came during a period of heightened political scrutiny, particularly after the presidential pardon granted to former CEO Changpeng "CZ" Zhao, which led to accusations of corruption and so-called "pay for play" politics in politics. Teng emphasized that the choice of USD1 for this transaction was entirely in the hands of MGX, and that Binance was not involved in the decision.

Investment deals under scrutiny

MGX's initial $2 billion investment in Binance was announced in March. However, this deal gained additional attention when Eric Trump, one of the president's sons and co-founder of World Liberty Financial, stated that the financing would be arranged with USD1. This allows the Trump family business to profit from the transaction, raising questions about the ethics of such transactions in the crypto sector.

After pardoning CZ on October 23, Trump stated in an interview with 60 Minutes that he did not know who the former Binance CEO was. He suggested that the Justice Department under the Biden administration had wrongly leveled accusations against Zhao, even though the former CEO had pleaded guilty as part of a $4,3 billion settlement with U.S. authorities concerning the exchange's anti-money laundering program.

Deeper Ties Between Binance and the Trump Family?

Although Teng denies that Binance was involved in the USD1 stablecoin, a Bloomberg report in July suggested that Binance was responsible for developing some of the code behind the stablecoin. This was confirmed by three anonymous sources familiar with the matter. Zhao, in response to this report, hinted that he was considering filing a defamation lawsuit against the news outlet.

US lawmakers are increasingly questioning the potential role of the president and his family in the ties to Binance. In October, Connecticut Senator Chris Murphy noted that Binance.US—a separate legal entity from the exchange—was engaged in "promoting Trump crypto," just a week after Binance's owner was pardoned. Massachusetts Senator Elizabeth Warren has made similar accusations about CZ's relationship with the president, which has also led to renewed lawsuits.

Frequently Asked Questions

Why would Binance bother with the Trump family?
Binance's involvement with the Trump family raises questions about political connections and ethics in investment deals, especially in a sector already known for its opacity. It's important for investors to understand how this dynamic could impact Binance's reputation and future prospects.

What does the relationship between MGX and Binance mean for the crypto market?
The partnership between MGX and Binance, and especially the use of a stablecoin backed by the Trump family, could have broader implications for trust in stablecoins and crypto investors. This could lead to increased regulation and oversight in the sector.

How can investors respond to these developments?
Given the increasing political attention and potential regulatory implications, investors need to rethink their strategies. It's crucial to consider not only the numbers and deals, but also the potential risks associated with political connections and controversies in the crypto space.

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