Binance Denies Political Payback Tied To Trump’s Pardon Of Founder CZ

Following President Donald Trump’s pardon of Changpeng Zhao (CZ), the co-founder and former CEO of Binance, criticism has surged among Democratic lawmakers. 

Allegations of political paybacks have emerged, particularly in light of Binance.US’s recent listing of USD1, a stablecoin linked to Trump’s family and part of the DeFi platform World Liberty Financial (WLFI).

Binance’s Alleged Role In Trump Family’s Crypto Profit

Senator Chris Murphy recently took to social media to express his concerns, stating, “One week after Trump pardoned Binance’s owner for a stunning array of crimes related to terrorist and sex predator financing, Binance starts promoting Trump crypto. The White House is a full-time, 24/7 corruption machine.” 

In response to these allegations, Binance.US issued a statement addressing Murphy’s comments. The exchange emphasized that it conducts thorough due diligence and legal reviews before listing any asset, whether it be a stablecoin or a new project. 

They clarified that both USD1 and WLFI are already listed on over 20 major exchanges, including US platforms like Coinbase (COIN), Robinhood (HOOD), and Kraken. 

Binance.US reiterated that the decision to list these assets was purely a business one, devoid of any political motivations. “It’s unfortunate that even routine business decisions are now unfairly politicized by our elected officials,” the statement noted.

Amid these developments, reports have surfaced suggesting that Binance may have had political ties with Trump, allegedly assisting the Trump family’s cryptocurrency venture in generating significant profits shortly before the pardon was granted. 

World Liberty Denies Involvement In Pardon Discussions

According to the Independent, Binance purportedly helped World Liberty Financial make billions and even created a “high-level task force” to negotiate a deal with the Trump-affiliated venture.

World Liberty has denied any discussions regarding a pardon, with its lawyer, Tom Clare, stating that the company “has never assisted in, facilitated, or influenced a decision on Mr. Zhao’s presidential pardon.” 

The company did express support for Zhao’s pardon, with spokeswoman Gail Gitcho mentioning, “Everyone who has been a victim of Joe Biden’s lawfare has rightfully been pardoned.”

Wayne F. Dennison, a lawyer for Binance, asserted that there was “no impropriety” involved and clarified that the company “did not control the stablecoin chosen by MGX.” 

Last week, Trump remarked that the pardon was granted “at the request of a lot of very good people,” although the optics of the decision raised concerns among some within his administration.

White House press secretary Karoline Leavitt also addressed the situation, stating that neither Trump nor his family has ever engaged in, or will ever engage in, conflicts of interest.

Featured image from DALL-E, chart from TradingView.com