Senators question Treasury and DoJ over Trump’s ties to Binance

Democratic senators, including Maryland’s Chris Van Hollen and Massachusetts’ Elizabeth Warren, demanded answers from top U.S. officials about ties between Binance and Trump family-related crypto projects. The senators raised their concerns in a letter sent on May 9 to Treasury Secretary Scott Bessent and Attorney General Pam Bondi.

The letter noted that the notion of Trump’s administration permitting Binance to continue operating and expanding in the U.S. is troubling. It also highlighted that Binance has repeatedly shown disregard for federal law and regulations that keep Americans safe.

Senators raise concerns about Trump’s connection to Binance

The potential for corruption here is simply staggering. https://t.co/8nKMcsjU1u

— Elizabeth Warren (@ewarren) May 7, 2025

The senators raised concerns in a Friday letter sent to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, seeking answers about President Donald Trump’s connection to a crypto exchange found guilty of violating U.S. money laundering and sanctions laws. The letter was also signed by senators Sheldon Whitehouse of Rhode Island and Richard Blumenthal of Connecticut.

Just a day prior to the letter, Senate Democrats blocked a long-anticipated stablecoin bill. The Democrats found that USD1, a virtual asset issued by a company controlled by the Trump family, was used to settle a $2 billion investment in Binance by MGX in March.

The Abu Dhabi-based technology investment company also announced its contribution to pay for Trump’s $100 billion initiative to fund artificial intelligence infrastructure, a day after Trump’s inauguration. MGX made the transaction public on May 1.

The deal connects the U.S. President to the world’s largest crypto exchange, which pleaded guilty to sweeping compliance failures less than two years ago. Binance’s former CEO, Changpeng Zhao, also pleaded guilty and stepped down from his role, after which he served four months in a U.S. prison.

“Our concerns about Binance’s compliance obligations are even more pressing given recent reports that the company is using the Trump family’s stablecoin to partner with foreign investment companies.” Senators Chris Van Hollen and Elizabeth Warren expressed in the letter.

Senate Democrats blocked the stablecoin legislation Thursday, partly due to the absence of finalized bill language. They also wanted a provision barring Trump and other senior officials from profiting from digital asset ventures while in office.

It has been previously reported that the Trump family-backed World Liberty Financial has explored business opportunities with Binance. The President’s family representatives have also held discussions with Binance about taking a stake in its U.S. affiliate, –Binance.US. 

The report also alleged that Zhao has pushed for a presidential pardon from the Trump administration. The former Binance senior executive revealed on a recent Farokh Radio podcast that he had already gotten lawyers applying for a pardon.

Senators Warren and Hollen asked Bessent and Bondi to report by May 21 on the steps they’ve taken to ensure Binance is complying with its plea agreement. The senators also requested an update on the crypto exchange’s planned U.S. exit, including a timeline. 

They pressed for clarity on whether Binance raised the topic of a potential pardon for Zhao with any Treasury or Department of Justice officials. The senators also asked if Binance had discussed WLFI or its interest in listing a new stablecoin on Binance with department officials.

Senate probes Trump’s ventures connections to potential ethical breaches

🚨 Trump’s Crypto Ties Under Investigation!🚨

A Senate probe is diving into President Trump’s connections to the $TRUMP meme coin and World Liberty Financial (WLF)—raising concerns over foreign influence and potential ethical breaches.

Sen. Richard Blumenthal has called for an… pic.twitter.com/63iNTw3feC

— moonopol.com Intern (@moonopoldotcom) May 7, 2025

The ranking Democrat on the Senate Permanent Subcommittee on Investigations within the Committee on Homeland Security and Government Affairs, Richard Blumenthal, sent letters on May 7 to Bill Zanker of Fight Fight LLC and Zach Witkoff, co-founder of WLFI. 

The letters contained questions about the ownership and investment structure of several Trump-affiliated ventures, including CIC Digital LLC, Fight Fight Fight LLC, Celebration Cards LLC, DTTM Operations LLC, as well as World Liberty Financial and its affiliates.

The letters indicated that the Permanent Subcommittee on Investigations is investigating potential conflicts of interest and legal violations involving Trump’s crypto entities and the financial dealings of associated businesses with foreign nationals, foreign governments, and other digital asset firms. The inquiries included how the companies block investments from foreign governments, their revenue generation, and whether individuals facing prosecution or investigation can participate.

KEY Difference Wire helps crypto brands break through and dominate headlines fast