Controversial Report: Binance’s Deep Ties to Trump’s World Liberty Financial Stablecoin Revealed
A recent report has sent ripples through the crypto community, suggesting potentially significant ties between major cryptocurrency exchange Binance and the crypto ventures backed by former US President Donald Trump. This connection centers around the creation and use of the USD1 Stablecoin issued by World Liberty Financial (WLF).
What Does the Report Allege About Binance and World Liberty Financial?
According to a Bloomberg report, citing sources familiar with the matter, Binance reportedly played a role in several key aspects related to World Liberty Financial‘s USD1 Stablecoin:
- Code Creation: Binance allegedly helped create the underlying code for the USD1 stablecoin.
- Promotion: The exchange reportedly assisted in promoting the stablecoin.
- Major Transaction Role: Binance reportedly played a part in the largest transaction involving USD1 to date.
World Liberty Financial, a business backed by Donald Trump and his sons, launched the USD1 stablecoin on March 4th.
The $2 Billion Stablecoin Connection
The report highlights a $2 billion investment in Binance announced by Abu Dhabi-based firm MGX on March 12th. Eric Trump, a co-founder of WLF, later stated that USD1 would be used to settle this investment. What raises questions is the report’s claim that as of Friday, 90% of the USD1 coins used in this transaction remained in Binance‘s wallets. This arrangement could potentially generate substantial interest earnings for the Trump family.
Implications and Potential Conflicts of Interest
The reported close relationship between one of the world’s largest crypto exchanges, Binance, and a business directly tied to Donald Trump, a prominent political figure, brings up significant questions regarding:
- Potential conflicts of interest.
- The possible use of political influence for business advantage.
- The transparency of dealings between major crypto platforms and politically connected entities.
Both Binance and World Liberty Financial were reportedly contacted for comment regarding these allegations, but responses were not received at the time of the original report.
The CZ Zhao Factor
Adding another layer to this complex situation is the legal status of Changpeng “CZ” Zhao, the former CEO of Binance. Having pleaded guilty to a felony charge in 2023 and served a prison sentence, CZ Zhao stated in May that he was seeking a presidential pardon from Donald Trump. A pardon could potentially open doors for CZ Zhao to return to a leadership role in the US crypto sector. The timing of the report regarding Binance’s ties to Trump’s business and CZ’s pardon request adds a layer of intrigue.
Stablecoin Regulation and Political Influence
This report emerges amidst ongoing efforts in the US Congress to regulate payment Stablecoins. Donald Trump‘s various crypto ventures, including World Liberty Financial and its stablecoin, have been under scrutiny from lawmakers. While a stablecoin bill recently passed the Senate with bipartisan support, partly overcoming initial resistance citing Trump’s crypto interests, its passage in the House remains uncertain. Trump has indicated he would sign an unamended bill if it reaches his desk.
Conclusion
The Bloomberg report alleging Binance‘s involvement in the creation and handling of World Liberty Financial‘s USD1 Stablecoin, especially within the context of a $2 billion transaction and Donald Trump‘s connection, raises serious questions for the crypto industry and political observers alike. The potential financial benefits for WLF and the connection to CZ Zhao‘s pardon request highlight the complex interplay between crypto business, politics, and regulation currently unfolding.
