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Binance CEO Richard Teng has denied claims that the company influenced the decision to use a Trump family-backed stablecoin in a $2 billion investment deal. He said Binance had no involvement in selecting USD1 for the transaction.
The denial came as U.S. lawmakers questioned the company’s possible ties to political figures. They also raised concerns about Binance’s expanding role in global crypto regulation.
Binance CEO Rejects Claims of Involvement in USD1 Deal
In an interview with CNBC, Binance CEO Richard Teng said Binance had no part in the decision to use USD1 for the investment transaction. USD1 is a stablecoin launched by World Liberty Financial, a company co-founded by Eric Trump.
The $2 billion investment came from MGX, an Abu Dhabi-based firm. Teng stated MGX made the decision independently, and Binance was not involved in choosing which stablecoin would be used.
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The Binance CEO stressed that Binance focuses only on business operations and compliance. He said the exchange was not connected to the Trump-backed stablecoin. According to Teng, Binance had no influence over MGX’s decision.
Political Attention and Media Reports
The issue gained attention after Eric Trump confirmed that the MGX deal used USD1. This revelation led to public concern about potential conflicts of interest. A Bloomberg report later suggested that Binance helped develop USD1’s code.
Binance CEO Richard Teng denied that claim, calling it inaccurate. He said the company never contributed to USD1’s design or technology.
CZ’s Pardon Rekindles Controversy
This subject grew more delicate when the Binance founder and former CEO Changpeng Zhao, or CZ, was pardoned by Donald Trump, the President of the United States, on October 23, 2025. In 2023, CZ was guilty of the failure to have an efficient anti-money laundering program.
In 2024, he served four months in prison based on a $4.3 billion settlement agreement with American regulators. The advisors to the president in the White House informed the president that this pardon had been carefully vetted.
Later, Trump informed 60 Minutes that he did not know CZ on a personal basis. The message was supposed to address the criticism but it later created more controversy regarding politics in the crypto world.
Following the resignation of CZ, Binance CEO Richard Teng assumed the leadership in order to regain the confidence of the company. He has been concentrating on the greater compliance, transparency and cooperation with other countries.
Teng added that Binance is working within stringent international regulations and will keep on establishing relationships with regulators.
Lawmakers React to the Deal
Senator Elizabeth Warren and Senator Chris Murphy have both questioned Binance’s connections to political figures. Warren accused Binance of benefiting from Trump’s policies, while Murphy criticized Binance.US for promoting “Trump crypto.”
The CEO of Binance replied that the exchange is not politically engaged and complies with all the standards. He highlighted that the tagline of Binance is to offer secure and legal access to digital assets at a global level.
Market Impact and Investor Sentiment
Despite the controversy, Binance remains the world’s largest crypto exchange by trading volume. Analysts say the Binance CEO’s direct response helped calm investors and avoid panic.
Market data show that Binance’s trading activity stayed steady after the news. Experts believe that clear communication and transparency have protected the company from further damage.
Ongoing Investigations and Media Focus
Reports linking Binance to World Liberty Financial continue to circulate. However, Binance CEO Richard Teng insists that the company had no role in USD1 or in the MGX transaction. He said the exchange has provided all necessary documentation to regulators.
Conclusion
The refusal of Richard Teng to admit being involved in political controversy emphasizes that the company is doing its best to avoid that situation. With Binance under his management, it is attempting to restore its reputation by complying, being transparent and well governed.
The company is still experiencing problems, nevertheless, the clear position of Teng can be used to build up confidence among people. He said that Binance does not deal with politics, but with innovation as it continues to grow all over the world.
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Appendix: Glossary of Key Terms
- Binance CEO: The chief executive officer leading Binance, responsible for regulatory compliance, strategic direction, and corporate governance.
- Richard Teng: The current Binance CEO who succeeded Changpeng Zhao in late 2024, known for promoting compliance and transparency in global crypto operations.
- USD1 Stablecoin: A digital currency pegged to the U.S. dollar, launched by World Liberty Financial, a crypto firm co-founded by Eric Trump.
- World Liberty Financial: A blockchain-based financial venture backed by the Trump family, creator of the USD1 stablecoin.
- MGX: An Abu Dhabi–based investment company that invested $2 billion in Binance, independently selecting USD1 for the transaction.
- Changpeng Zhao (CZ): The former Binance CEO who pled guilty to compliance violations in 2023 and was later pardoned by President Trump.
Frequently Asked Questions About Binance CEO
1. What did Binance CEO Richard Teng deny?
He refuted the notion that Binance had influenced the move to implement the Trump-supported USD1 stablecoin in the $2 billion MGX transaction.
2. What is USD1?
USD1 is an example of a stablecoin by World Liberty Financial, a cryptocurrency investment company that was co-founded by Eric Trump.
3. Why is the deal controversial?
A Trump-affiliated coin was also used and this was in question concerning the possibility of conflict of interests and the political influence of Binance.
4. Who is CZ and why was he pardoned?
Changpeng Zhao, a former CEO of Binance, got a pardon on agreeing to violate of the compliance by President Trump.
