CZ Breaks Silence on Pardon Rumors, Denies Any Deal with WLFI

Former Binance CEO Changpeng “CZ” Zhao denies a pardon deal with WLFI. He refutes reports linking Binance’s support for a Trump-linked crypto venture to his October 2025 pardon.

Former Binance CEO Changpeng “CZ” Zhao has broken his silence. He has firmly denied any deal with World Liberty Financial (WLFI). This denial is in the midst of rumors of a presidential pardon from Donald Trump. As a result, CZ denied allegations made against it of a quid pro quo.

CZ and Teng Refute “Categorically False” Claims

Zhao as well as current Binance CEO Richard Teng have both responded to the allegations. They denied claims that Binance had backed the Trump-connected crypto operation. This so-called aid was apparently on the condition of the pardon.

Related Reading: Crypto News Today: Binance Denies Allegations of Backing Trump Family Crypto Projects | Live Bitcoin News

CZ said in an interview that he had met Eric Trump once. This meeting happened at a Bitcoin conference in Abu Dhabi. However, he refused to have a pardon by making a deal with WLFI.

“That is totally wrong,” CZ said. “There was no negotiation and no dialogue.” There never was a negotiating process. He stated, “I have no business connection with WLFI.” Therefore, he loudly rejected any such arrangement.

President Donald Trump pardoned Changpeng Zhao in October 2025. Zhao had pleaded guilty in 2023. One of his pleas involved not having an effective anti-money laundering program at Binance. So the pardon set out instant speculation.

These claims were encouraged by reports from the Wall Street Journal, among others. They alleged that WLFI had been supported by Binance. This cryptocurrency venture is linked to the Trump family. Specifically, an investment worth $2 billion with the United Arab Emirates’ Abu Dhabi based MGX was reported.

The contract was allegedly negotiated using USD1. USD1 is a stablecoin from WLFI. As a result, some reports suggested that this transacted deal shaped the pardon. Zhao told interviews after the pardon that those reports were “categorically false.”

“There was never an agreement, there never was any discussions” about a pardon. This was true of any commercial relationship with WLFI. Thus, Zhao’s denial is straightforward and clear.

Trump’s Comments and Binance’s Stance on USD1 Transaction

Current Binance CEO Richard Teng also refuted the allegations. He said the USD1 stablecoin was the MGX decision on the choice of the stablecoin used in the MGX transaction. It was not made by Binance. As a result, Binance does not claim responsibility for that particular decision.

Trump himself also comments on the pardon. He said that he does not know Zhao. He said he issued the pardon “on the request of a lot of very good people.” Therefore, Trump is distancing himself from CZ.

He also described the case as a reach by the prior administration. Thus, Trump poses the pardon as a correction. He sees it as correcting what he sees as injustices of the past.

With the Congressional sessions of 2025 coming to a close, senators are working harder than ever before. The bill, which is meant to approve a digital asset market structure, is being sought by the bots. The target is to have this passed by the end of the year. As a result, so is legislative activity.

Senate Banking Committee staffers on both sides recently began discussions again. This came after last month’s struggles over Democrats’ solutions. Such proposals were related to decentralized finance (DeFi) guardrails. Therefore, even though they may have disagreed in the past, bipartisanship still occurs.

Implications for Crypto Regulation and Future

The need for the bill on a digital asset market structure is important. It is intended to introduce regulatory clarity to the crypto space. Therefore, its passage would have a critical influence on future market activity. Thus, these legislative developments are being keenly watched by the industry.

The possible transfer of primary crypto regulation to the CFTC is significant. This would result in a better regulatory framework. As a result, it may help to increase institutional involvement. However, the impact of the bill will depend on the specific details of the bill.

In conclusion, CZ’s adamant refusal to accept a pardon deal with WLFI is a move to put to rest the rumors. Binance and Trump have also rejected the claims. In the meantime, the push for essential crypto legislation by Congress continues. Therefore, the industry is experiencing continuous legal scrutiny and changing regulatory environments.