Former Binance CEO Allegedly Supported Crypto Projects Tied to Trump Family
A recent report by Bloomberg News has revealed that former Binance CEO Changpeng Zhao allegedly supported crypto projects connected to the Trump family while privately seeking a presidential pardon. The report claimed that Binance played a crucial role in writing the foundational smart contract code for USD1, a stablecoin issued by World Liberty Financial, a company linked to President Donald Trump.
According to sources familiar with the matter, Binance’s involvement enabled USD1 to be utilized in a $2 billion investment in Binance by UAE-based MGX. Blockchain data analyzed by Bloomberg indicated that approximately 90% of USD1’s $2 billion total supply is held in Binance wallets. The token’s prospectus suggested that the Trump family could potentially receive around $30 million annually from interest earned on reserves backing the stablecoin.
In response to these allegations, a Binance spokesperson stated that the listing of USD1 followed standard procedures and emphasized that Zhao’s pardon application is a personal matter unrelated to the company’s activities. Zhao, who previously pleaded guilty to anti-money-laundering violations and served time in a California halfway house, confirmed his pardon request during a podcast interview.
Ethics experts have expressed concerns about potential conflicts of interest arising from these crypto initiatives tied to Trump. Richard Painter, former chief ethics counsel under President George W. Bush, remarked on the unprecedented nature of a president whose personal financial interests conflicted with official duties.
The Trump administration has maintained that the President has no conflicts of interest, citing a trust structure overseen by Donald Trump Jr. Despite denials from World Liberty and Zhao regarding the allegations, reports suggest that crypto initiatives linked to Trump have significantly contributed to his fortune in recent months.
Plans are underway for World Liberty co-founder and Trump ally Steve Witkoff to transfer his interests in World Liberty Financial to his adult sons, as confirmed by White House counsel David Warrington. Discussions between Binance and World Liberty regarding a new stablecoin were reportedly ongoing, with World Liberty announcing intentions to issue a token on BNB Smart Chain.
These developments coincide with reports of Zhao seeking a pardon from Trump, raising further questions about the intersection of politics and cryptocurrency. The complex web of relationships and financial interests underscore the need for transparency and accountability in the rapidly evolving crypto landscape.