Binance CEO Rejects Claims of Involvement in USD1 Deal
Binance CEO Richard Teng has denied claims that the company influenced the decision to use a Trump family-backed stablecoin in a $2 billion investment deal. He stated that Binance had no involvement in selecting USD1 for the transaction. The denial comes amid scrutiny from U.S. lawmakers who have questioned the company’s potential ties to political figures and its growing influence in global crypto regulation.
In an interview with CNBC, Teng explicitly stated that Binance played no part in the decision to use USD1, a stablecoin launched by World Liberty Financial, a company co-founded by Eric Trump. The $2 billion investment originated from MGX, an Abu Dhabi-based firm. Teng clarified that MGX made this selection independently, and Binance was not involved in choosing which stablecoin would be utilized for the transaction.
The Binance CEO emphasized that the exchange's focus remains strictly on business operations and compliance. He asserted that Binance has no connection to the Trump-backed stablecoin and exerted no influence over MGX’s choice.
Political Attention and Media Reports
The issue gained significant public attention after Eric Trump confirmed that the MGX deal involved USD1. This revelation sparked concerns about potential conflicts of interest. A subsequent report from Bloomberg suggested that Binance had assisted in developing USD1’s code. Binance CEO Richard Teng refuted this claim, labeling it as inaccurate and reiterating that the company never contributed to USD1’s design or technology.
CZ’s Pardon Rekindles Controversy
The situation became more sensitive when Binance founder and former CEO, Changpeng Zhao (CZ), received a pardon from President Donald Trump on October 23, 2025. CZ had pleaded guilty in 2023 to failing to maintain an effective anti-money laundering program. In 2024, he served four months in prison following a $4.3 billion settlement agreement with U.S. regulators. White House advisors reportedly informed the President that the pardon had undergone thorough vetting.
Later, Trump stated in an interview with 60 Minutes that he did not know CZ personally. While intended to address criticism, this statement inadvertently generated further controversy surrounding politics within the cryptocurrency sector. Following CZ’s resignation, Richard Teng assumed leadership of Binance, aiming to restore the company’s confidence. Teng has been prioritizing enhanced compliance, transparency, and cooperation with international authorities.
Teng added that Binance is operating under stringent international regulations and is committed to continuing its engagement with regulators worldwide.
Lawmakers React to the Deal
U.S. Senators Elizabeth Warren and Chris Murphy have both raised questions regarding Binance’s connections to political figures. Senator Warren accused Binance of benefiting from Trump’s policies, while Senator Murphy criticized Binance.US for promoting "Trump crypto." The CEO of Binance responded by stating that the exchange is not politically engaged and adheres to all regulatory standards. He highlighted Binance's mission to provide secure and legal access to digital assets globally.
Market Impact and Investor Sentiment
Despite the ongoing controversies, Binance maintains its position as the world's largest cryptocurrency exchange by trading volume. Analysts suggest that the Binance CEO's direct responses have helped to stabilize investor sentiment and prevent panic. Market data indicates that Binance's trading activity remained consistent following the news. Experts believe that clear communication and transparency have been instrumental in protecting the company from further reputational damage.
Ongoing Investigations and Media Focus
Reports linking Binance to World Liberty Financial continue to circulate. However, Binance CEO Richard Teng maintains that the company had no involvement in USD1 or the MGX transaction. He affirmed that the exchange has provided all necessary documentation to regulatory bodies.
Conclusion
Richard Teng's refusal to acknowledge involvement in political controversies underscores the company's efforts to distance itself from such situations. Under his leadership, Binance is striving to rebuild its reputation through a renewed focus on compliance, transparency, and good governance.
Although the company continues to face challenges, Teng's clear stance aims to foster confidence among stakeholders. He reiterates that Binance's focus is on innovation and global growth, not political engagement.
Appendix: Glossary of Key Terms
- Binance CEO : The chief executive officer leading Binance, responsible for regulatory compliance, strategic direction, and corporate governance.
- Richard Teng : The current Binance CEO who succeeded Changpeng Zhao in late 2024, known for promoting compliance and transparency in global crypto operations.
- USD1 Stablecoin : A digital currency pegged to the U.S. dollar, launched by World Liberty Financial, a crypto firm co-founded by Eric Trump.
- World Liberty Financial : A blockchain-based financial venture backed by the Trump family, creator of the USD1 stablecoin.
- MGX : An Abu Dhabi–based investment company that invested $2 billion in Binance, independently selecting USD1 for the transaction.
- Changpeng Zhao (CZ) : The former Binance CEO who pled guilty to compliance violations in 2023 and was later pardoned by President Trump.
Frequently Asked Questions About Binance CEO
1. What did Binance CEO Richard Teng deny?
He refuted the notion that Binance had influenced the move to implement the Trump-supported USD1 stablecoin in the $2 billion MGX transaction.
2. What is USD1?
USD1 is a stablecoin by World Liberty Financial, a cryptocurrency investment company that was co-founded by Eric Trump.
3. Why is the deal controversial?
A Trump-affiliated coin was used, raising questions about potential conflicts of interest and Binance's political influence.
4. Who is CZ and why was he pardoned?
Changpeng Zhao, former CEO of Binance, received a pardon from President Trump after agreeing to violations of compliance.