Trump’s Connections to Binance Bring New Inquiries Into Stablecoin Ethics
An investigation by Bloomberg is highlighting an unexpected link between the cryptocurrency behemoth Binance and the Trump-associated stablecoin USD1. As per insider sources, Binance rendered discreet technological and marketing assistance for the token shortly before its creator, Changpeng Zhao, better known as CZ, sought a pardon from former President Trump.
Binance Subtly Supported a Political Stablecoin
Launched by World Liberty Financial, USD1 was marketed as a Pro-American alternative among stablecoins. However, what remained undisclosed at the time was the extent of Binance’s involvement. Reportedly, the firm managed the core systems of the token and facilitated its promotion to its vast global user community.
The collaboration didn’t end there. Additionally, World Liberty executed a $2 billion investment in Binance using USD1, with that capital currently held in Binance wallets. Critics contend that this arrangement might be generating significant benefits for the Trump family while presenting serious ethical concerns.
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— DramaSoda (@dramasodacoin) July 12, 2025
CZ has since distanced himself from the daily management of Binance. His request for a pardon was framed as a personal issue, and Binance has refrained from discussing the specifics or timeline of its connection with World Liberty. A spokesperson for the Trump-associated firm dismissed the probe as politically motivated.
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A Matter of Timing and Impact
What is raising questions is the timing overlap. Binance faced ongoing regulatory scrutiny for past money laundering infractions during the USD1 partnership. CZ, having absorbed heavy fines and resigned as CEO, subsequently sought a pardon from Trump. The relationship between this pardon request and Binance’s discreet involvement with a Trump-linked stablecoin raises significant eyebrows.
Simultaneously, USD1 has been transferring funds across borders, particularly between investors in the UAE and Binance accounts. This adds an international financial dimension to an already politically charged scenario.
Crypto Experts Are Expressing Concern
While the crypto community has experienced significant excitement about tokenized assets and political coins, this particular case feels distinctive. Bloomberg’s findings reveal that Binance created the foundational infrastructure for USD1, developed the token, and contributed to its promotion through its protocol. For a firm still under strict oversight, engaging in something this politically charged has astonished even those within the industry.
World Liberty insists there was no preferential treatment, and Binance asserts that CZ is no longer involved in management. Nonetheless, various unidentified sources have indicated that Binance’s engagement was both considerable and deliberate.
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Increased Stakes for the Sector
Should USD1 yield financial advantages for the Trump family, and if those advantages are connected to a firm whose founder is seeking legal favors, the ramifications extend far beyond the crypto asset domain. It suggests that stablecoins may be utilized as financial vehicles to exert influence, rather than merely for innovation.
This development could trigger renewed scrutiny from regulators already examining stablecoins as instruments of shadow finance. Certain Democrats have advocated for stricter regulations, citing this very type of overlap of politics, finance, and technology.
What Happens Next?
The situation is poised to intensify. Should USD1 remain operational, if its revenues continue to flow into Binance, and if CZ’s pardon request remains significant, this narrative is unlikely to fade. For the time being, it serves as a live case study on how digital currency, politics, and influence are becoming more intertwined.
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Essential Points
- Binance discreetly aided the Trump-related stablecoin USD1 by managing its infrastructure and marketing it to a global audience.
- USD1’s $2 billion investment into Binance and CZ’s subsequent pardon request from Trump prompt considerations about timing and influence.
- The stablecoin has facilitated international fund transfers, including between investors in the UAE and Binance accounts, adding a geopolitical dimension.
- Industry insiders are worried that Binance’s substantial role in a political crypto token may blur the distinction between innovation and influence.
- This case is sparking discussions about whether stablecoins are being leveraged as financial instruments for political interests, rather than merely blockchain finance.
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