Binance.US fired back at Chris Murphy, addressing the Connecticut Senator’s accusations of promoting “Trump crypto” following President Donald Trump’s pardon of Binance founder Changpeng Zhao (CZ).
The dispute centers on whether business decisions tied to Trump-related crypto projects reflect political favoritism. Seven Senate Democrats are now urging a formal investigation into the pardon and its financial links.
Sponsored
Sponsored
Binance.US Rebuts ‘Politicized’ Trump Crypto Claims After CZ Pardon
On October 29, Binance.US announced it would accept USD1 deposits. World Liberty Financial (WLFI) issues the stablecoin, backed by regulated reserves such as US Treasuries.
Trading for the USD1/USDT pair started that same day at 7 a.m. EDT. The US arm of the Binance exchange emphasized its adherence to due diligence. It articulated that USD1 and WLFI were already listed on more than 20 major exchanges, including Coinbase, Robinhood, and Kraken.
Just one week prior, President Trump had pardoned CZ. The Binance executive had previously pleaded guilty to charges tied to anti-money laundering violations.
Following this, Senator Murphy criticized the White House. He described it as a “24/7 corruption machine,” asserting that the exchange promoted “Trump crypto” linked to crimes involving illicit financing.
Murphy connected the USD1 stablecoin listing to claims of corruption, intensifying legal and political tensions in the crypto sector.
In response, Binance.US rejected the allegations as politicized. The company stated that USD1 and WLFI were approved by its listing committee. Citing standard procedures, it stressed the assets’ presence on other major platforms. The exchange maintained its focus on due diligence and legal review for all listings.
Sponsored
Sponsored
“We conduct comprehensive due diligence and legal review before listing any asset on @BinanceUS, whether it’s a stablecoin, a new ecosystem project, or a meme token. Not only are USD1 and WLFI already listed on 20+ major exchanges, including U.S. platforms @coinbase, @RobinhoodApp, and @krakenfx, but these assets have both been approved for some time by our listing committee in its ordinary course of business,” Binance.US defended.
Senate Democrats Seek Investigation Into Trump-CZ Pardon
Seven Senate Democrats sent a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent.
They demanded an official investigation into the pardon and cited financial connections among Binance, World Liberty Financial, Trump, CZ, and MGX. The latter is associated with Steve Witkoff, a Middle East envoy.
The senators argued the pardon could encourage white-collar crime in the crypto field and highlighted a pattern of “enriching President Trump.”
They referenced expanding financial ties between Binance and Trump since late 2024, including USD1’s growth on the Binance Smart Chain.
Sponsored
Sponsored
World Liberty Financial reportedly secured a $2 billion investment from MGX, generating significant revenue for Trump’s company through Binance and the stablecoin.
This group of senators described these links as evidence of ongoing conflicts of interest and political favoritism. Their letter, sent on the Tuesday after CZ’s pardon, accompanied broader efforts led by Senator Warren and Representative Adam Schiff to pass resolutions against the pardon.
Other Democrats have pushed for bans on crypto trading and foreign funds for Trump and elected officials.
The USD1 stablecoin remains central to the dispute. BitGo, a blockchain infrastructure provider, confirmed its role as USD1’s custodian, ensuring the stablecoin is 100% backed by short-term US Treasuries, dollar deposits, and cash equivalents.
BitGo noted the asset can be redeemed one-to-one for US dollars and is built for regulatory compliance and security.
Sponsored
Sponsored
Political Fallout and Industry Scrutiny Grow
The impact of CZ’s pardon reaches beyond USD1 and Binance.US. Trump has extended additional pardons to crypto-associated figures like Heather Morgan, connected to the Bitfinex hack, and Ross Ulbricht, founder of Silk Road.
This has heightened criticism from lawmakers and spurred bipartisan debate on the administration’s stance regarding crypto regulation and white-collar crime.
Some say the pardon of CZ, who was charged with serious financial crimes, undermines the rule of law and sends the wrong message to the industry. Supporters, meanwhile, argue the crypto sector faces unfair scrutiny and that the pardons demonstrate a focus on economic innovation.
The links between Binance and political entities keep attention on questions of transparency and the political role in digital assets.
Nonetheless, Binance.US’s stance is that the listings for USD1 and WLFI followed the established process.
As the investigation takes shape, the crypto sector must address challenges related to transparency, potential conflicts of interest, and the influence of politics on digital asset markets.
Source: https://beincrypto.com/binance-us-trump-crypto-senator-murphy/