Binance's Secret Role in Trump Family's Cryptocurrency Scandal
The Trump family's crypto company, World Liberty Financial, released its stablecoin USD1 in March, but what's not widely known is that the underlying code was secretly written by Binance, the cryptocurrency exchange founded by Changpeng "CZ" Zhao. This revelation raises serious conflict of interest questions, as Zhao is seeking a presidential pardon, and Binance has promoted USD1 to its 275 million users. According to Bloomberg, an Emirati investment firm bought a $2 billion stake in Binance using USD1, and the assets backing the coin could generate tens of millions of dollars per year in interest income for the Trumps.
Key Takeaways:
- Binance secretly wrote the underlying code for World Liberty Financial's stablecoin USD1, which was released in March.
- The code allowed an Emirati investment firm to buy a $2 billion stake in Binance using USD1, instead of a competitor coin.
- Binance promoted USD1 to its 275 million users, potentially generating tens of millions of dollars per year in interest income for the Trumps.
- Changpeng "CZ" Zhao, Binance's founder, is seeking a presidential pardon and was accused of violating federal money laundering laws in 2023.
- Binance paid a $50 million fine and Zhao paid an additional $50 million fine, and Zhao stepped down from the company.
- A World Liberty Financial spokesperson claimed that the report's claims were "factually deficient and designed to further a political agenda."
- Regulatory filings by Circle Internet Group Inc. show that Binance was paid $60 million up front to promote its coin, and agreed to share future revenue with the exchange.
Statistics:
- $2 billion: The value of the stake bought by the Emirati investment firm in Binance using USD1.
- 275 million: The number of Binance users who were promoted to use USD1.
- $50 million: The fine paid by Binance for violating federal money laundering laws.
- $50 million: The fine paid by Changpeng "CZ" Zhao for violating federal money laundering laws.
- $60 million: The amount paid by Circle Internet Group Inc. to Binance up front to promote its coin.
- $4.3 billion: The fines paid by Binance for violating federal money laundering laws.
- 2023: The year Zhao was accused of violating federal money laundering laws and paid a fine.
Sources:
- "Pam Bondi Goes Bonkers When Grilled About Trump's Crypto Corruption" by The Daily Beast (https://www.thedailybeast.com/pam-bondi-goes-bonkers-when-grilled-about-trumps-crypto-corruption/)
- "Trump Raising Millions at Crypto Events Prompts Ethics Concerns" by The Daily Beast (https://www.thedailybeast.com/trump-raising-millions-at-crypto-events-prompts-ethics-concerns/)
- "Trump Family-Backed Crypto Project World Liberty Financial Is Dropping a New Token" by The Daily Beast (https://www.thedailybeast.com/trump-family-backed-crypto-project-world-liberty-financial-is-dropping-a-new-token/)
- "Trump's Crypto Link with Binance Raises Conflict of Interest Questions" by Bloomberg (https://www.bloomberg.com/news/features/2025-07-11/trump-s-crypto-link-with-binance-raises-conflict-of-interest-questions?srnd=homepage-americas)