TLDR
- Binance CEO Richard Teng denies Binance’s role in selecting the USD1 stablecoin for MGX investment deal.
- Teng confirms MGX, not Binance, decided to use USD1 stablecoin for the $2 billion investment deal.
- Lawmakers raised concerns about potential political influence after Trump pardoned former Binance CEO.
- The USD1 stablecoin, tied to the Trump family, is issued by World Liberty Financial co-founded by Eric Trump.
- Binance denied claims from Bloomberg that it helped develop the code for the USD1 stablecoin.
Binance CEO Richard Teng has firmly denied accusations that the cryptocurrency exchange played a part in selecting the USD1 stablecoin for a high-profile investment deal. The deal, involving a $2 billion investment from the Abu Dhabi-based company MGX into Binance, came under scrutiny after Eric Trump, a co-founder of the Trump family-backed World Liberty Financial, stated that the deal would use USD1.
Denial of Involvement in Stablecoin Selection
Teng addressed the controversy following a report that linked Binance to the decision to use USD1. He explained that the choice of stablecoin was made solely by MGX, the strategic investor. Teng clarified that Binance “didn’t partake” in the decision-making process for the transaction. This clarification came after mounting scrutiny over the deal, which involves World Liberty Financial’s USD1 stablecoin and its connection to the Trump family.
The initial investment deal between MGX and Binance was announced in March 2025. However, it gained further attention when Eric Trump confirmed that the stablecoin USD1 would be used to facilitate the $2 billion transaction. This detail raised questions about potential conflicts of interest, as the Trump family has a stake in World Liberty Financial.
Scrutiny from U.S. Lawmakers
The deal has also drawn the attention of U.S. lawmakers, especially after President Donald Trump issued a pardon for former Binance CEO Changpeng “CZ” Zhao. Lawmakers, including Connecticut Senator Chris Murphy and Massachusetts Senator Elizabeth Warren, have raised concerns about the links between the Trump family and Binance.
They have questioned the legitimacy of the connection, suggesting possible political influences surrounding the investment. A Bloomberg report in July further complicated matters by claiming that Binance had been involved in developing some of the code behind USD1. Binance has since denied these allegations, and CEO Zhao threatened legal action against Bloomberg over the report.
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Source: https://blockonomi.com/binance-ceo-denies-role-in-trump-family-backed-stablecoin-deal/