TLDR
- Binance CEO Changpeng Zhao, not Richard Teng, denied that Binance influenced the choice of USD1 in a $2 billion deal with MGX.
- Teng stated that MGX independently selected the Trump-backed USD1 stablecoin for the investment transaction.
- The Binance CEO emphasized that the company had no role in the decision process regarding the stablecoin.
- The deal between Binance and Abu Dhabi-based MGX was first announced in March of this year.
- Eric Trump confirmed that the transaction would be settled using USD1 under his firm World Liberty Financial.
The Binance CEO has rejected claims that the company helped select a Trump-backed stablecoin for a $2 billion deal. Richard Teng said Binance “didn’t partake” in choosing USD1 for a transaction with Abu Dhabi-based MGX, according to CNBC. Lawmakers have questioned the deal after U.S. President Donald Trump pardoned former Binance chief Changpeng Zhao.
USD1 and the MGX Investment
Binance CEO Richard Teng clarified that MGX alone decided to use USD1 for the $2 billion funding transaction. “The usage of USD1 [for the] transaction between MGX as a strategic investor into Binance, that was decided by MGX,” Teng told CNBC. He added that Binance had no involvement in selecting the Trump-backed token.
The deal, announced in March, positioned MGX as a major investor in Binance’s global operations. However, the choice of USD1 brought political attention to both parties. Teng stressed that the Binance CEO “didn’t partake in that decision,” seeking to distance the exchange from the controversy.
Eric Trump, co-founder of World Liberty Financial, earlier confirmed that USD1 would facilitate the deal’s settlement. The Trump family’s business reportedly benefits from every transaction using the stablecoin. Critics argue that the structure could present conflicts of interest involving the president’s family.
Binance CEO Faces Scrutiny Over Trump Links
The issue intensified when President Trump pardoned former Binance CEO Changpeng Zhao on October 23. The decision triggered questions from lawmakers about potential political favors. In a “60 Minutes” interview, Trump said he “didn’t know” Zhao and accused the previous administration of unfair prosecution.
Zhao had pleaded guilty to U.S. Anti-Money Laundering violations as part of a $4.3 billion settlement. Following the pardon, multiple senators raised concerns over possible “pay for play” dealings between the White House and Binance. The Binance CEO continued to insist that the exchange followed all legal and compliance protocols.
Connecticut Senator Chris Murphy criticized Binance.US for allegedly “promoting Trump crypto.” He claimed the timing of Zhao’s pardon raised ethical questions. Massachusetts Senator Elizabeth Warren echoed the allegations and warned of blurred lines between business and politics.
Questions Over Binance’s Involvement
A Bloomberg report in July alleged that Binance developed parts of the USD1 stablecoin’s code. The article cited anonymous sources who claimed the company played a technical role in USD1’s creation. Binance CEO Richard Teng refuted the claims and called them “false and misleading.”
In response, Zhao suggested that he might sue Bloomberg for defamation over the report. Teng emphasized that Binance’s current leadership focuses on compliance and transparency. He said the exchange remains independent of political or family-linked ventures.
U.S. lawmakers continue to seek clarity on Binance’s financial dealings with MGX and related parties. Teng maintains that all agreements between Binance and MGX comply with international standards. He reaffirmed that the Binance CEO will cooperate with ongoing inquiries into the USD1 transaction.
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