Democrats Request Treasury & DOJ To Clarify Binance’s Ties To Trump

Democrat senators are taking a step further to investigate the allegations of corruption against Donald Trump by asking the US Treasury and Department of Justice (DOJ) for clarity on crypto exchange Binance’s relationship with the Trump family.

This comes following reports that Abu Dhabi’s MGX will use the USD1 stablecoin, issued by Trump-linked World Liberty Financial, to finance its investment in the top crypto exchange.

Democrat Senators Investigate Ties Between Binance & Trump

According to a Bloomberg report, Democratic senators, including Elizabeth Warren and Chris Van Hollen, have demanded answers from the US Treasury and DOJ about the ties between Binance and the Trump family’s crypto ventures.

In a letter addressed to Secretary Scott Bessent and AG Pam Bondi, the lawmakers raised concerns that the US president’s ties to an exchange that the country found guilty of breaching anti-money laundering regulations, alongside its founder Changpeng “CZ” Zhao. CZ was sentenced to four months in prison after pleading guilty to AML violations.

In the letter, the senators alluded to reports about Abu Dhabi’s MGX using the USD1 stablecoin to finance its $2 billion investment in the crypto exchange. It is also worth mentioning that Trump-linked World Liberty Financial (WLFI) is the stablecoin issuer.

Meanwhile, most of the stablecoin’s circulating supply is on the BNB, which puts the relationship between the crypto exchange and Trump’s family in the spotlight. As CoinGape reported in March, the Trump family allegedly discussed acquiring a stake in the US arm of the top crypto exchange.

In the letter, the senators also said,

The notion that this administration might permit Binance to continue operating and expanding in the United States is deeply troubling, particularly given that the company has shown time and time again its disregard for federal law and regulations that keep Americans safe.

In line with this, Warren and the other senators have asked Bessent and Bondi to provide a report by May 21 on steps they have taken to ensure that the crypto exchange is complying with its plea agreement. They futher demanded an update on the exchange’s planned exit from the US and a timeline for when that will happen.

Additionally, they probed for clarity on whether Binance has discussed a potential pardon for CZ with any Treasury or DOJ official and if the exchange has talked about WLFI or the firm’s interest in listing its stablecoin on the exchange.

✓ Share:

Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.