Binance CEO Richard Teng has rejected allegations that the cryptocurrency exchange played a role in boosting a Trump-backed stablecoin prior to the presidential pardon of former CEO Changpeng Zhao, a development that has drawn public scrutiny from lawmakers and media reports.
The claims center on activity tied to USD1, a stablecoin associated with former President Donald Trump, and a large purchase of those tokens by investment firm MGX. Reports say MGX bought $2 billion worth of USD1 tokens in a transaction that was facilitated by Binance, and that the purchase took place shortly before a major U.S.-U.A.E. microchip deal. Senator Elizabeth Warren, ranking member of the Senate Banking Committee, has accused Binance and the Trump administration of corruption in connection with Zhao’s pardon and cited Binance’s ties to the Trump-linked World Liberty Financial in her allegations. Teng has publicly dismissed assertions that the exchange helped prop up the Trump-backed stablecoin ahead of Zhao receiving a presidential pardon.
The situation has intertwined questions about corporate conduct, political influence and the timing of significant financial transactions. Zhao, who led Binance until his exit from the company, was granted a presidential pardon; Warren framed that pardon and Binance’s reported relationships as evidence of possible impropriety. Reports pointing to the MGX purchase and its proximity to diplomatic or trade developments have been presented as a focal point for scrutiny, though public accounts have so far described the sequence of events rather than offering definitive proof of coordination or wrongdoing.
Binance’s role in facilitating the MGX purchase is a central element in the controversy. Cryptocurrency exchanges commonly provide liquidity and custody services that enable large token purchases, and the reports cited by critics identify Binance as the intermediary for MGX’s $2 billion acquisition of USD1 tokens. Observers have noted the timing of that purchase relative to the reported U.S.-U.A.E. microchip deal and Zhao’s later pardon, prompting calls for clarity about whether those events were related.
Sen. Warren’s statements have elevated the episode into a political matter, linking corporate activity to a high-profile presidential action and to entities described as connected to the former president. Warren’s role as ranking member of the Senate Banking Committee gives her platform to raise such concerns in a forum that has authority over financial regulation; however, the committee’s specific actions or inquiries in response to these particular claims have not been detailed in the reporting provided.
Teng’s dismissal of the accusations constitutes the latest public response from Binance’s leadership. Beyond that rebuttal and the public allegations, reporting has emphasized the chronological overlap among the token purchase, the microchip deal and the pardon as the reason the transactions attracted attention. At this stage, coverage has largely documented the sequence of events and the competing assertions of impropriety and denial rather than resolved substantive questions about causation or illegality.
The episode has added to broader debates about transparency and governance in cryptocurrency markets and the potential for political influence tied to high-value digital asset transactions.
It has also underscored tensions between lawmakers pressing for accountability and industry executives defending the integrity of their operations.