Binance CEO Richard Teng Denies Involvement in Trump-Linked USD1 Stablecoin Amid Political Fallout

For the first time since the CZ-Trump scandal broke the news, Binance CEO has stepped out to deny all allegations that the exchange has supported the controversial USD1 stablecoin, linked to President Trump's crypto business.

During his statement, Richard Teng refuted claims that Binance had a role in the promotion and support of the USD1 stablecoin. The token, issued by World Liberty Financial, has drawn attention to its apparent political connections. Critics claim the stablecoin was used as a tool to curry favor with the Trump administration in the lead-up to CZ’s early release from prison.

Teng pushed back firmly on those claims, calling them “baseless” and “politically motivated.” He stressed that Binance’s operations are independent of any political agenda and that the exchange followed standard procedures when listing USD1.

Teng also stated that there were already many major exchanges have had already listed the token before Biannce, and that Binance's decision was just part of a normal market review process.

He also clarified that a $2 billion investment in USD1 by Abu Dhabi-based MGX Fund had “no connection” to Binance or its leadership. The fund’s move, according to Teng, was an independent decision reflecting broader investor interest in stablecoins — not a coordinated effort to influence Trump or U.S. authorities.

Trump’s selective crypto pardons draw criticism

Despite Teng’s denials, the accusations have drawn scrutiny from U.S. lawmakers. Senator Richard Blumenthal and other members of the Senate Banking Committee have raised questions about whether Binance’s association with USD1 could constitute a conflict of interest.

The controversy erupted shortly after Trump’s highly publicized pardon of CZ — an act that has fueled both market speculation and political backlash. Changpeng Zhao, who stepped down as Binance CEO in 2024 after pleading guilty to anti-money-laundering violations, was sentenced to four months in prison.

His early pardon, granted by Trump, was met with both celebration from segments of the crypto community and outrage from critics who accused the former president of “politicizing justice.”

For Richard Teng, the incident threatens to derail Binance’s ongoing efforts to distance itself from past controversies. Since assuming leadership, he has pushed for a new era of compliance, transparency, and institutional trust.

“Binance has turned a corner. Our focus is building bridges with regulators and rebuilding confidence in digital finance.”

Trump’s decision to pardon CZ while declining clemency for Sam Bankman-Fried (SBF), the disgraced FTX founder sentenced to 25 years for fraud, has drawn sharp criticism across political and financial circles. Many view the move as emblematic of Trump’s transactional approach to both politics and crypto.

“CZ represents a sector Trump sees as strategically valuable — a gateway to crypto-friendly voters and major financial backers. SBF, on the other hand, symbolizes the kind of collapse that undermines market trust. There’s little political upside in defending him.”

Senator Elizabeth Warren condemned Trump’s action, calling it “a dangerous precedent that blurs the line between financial influence and political favor.” Others have pointed to Trump’s reported connections with entities linked to World Liberty Financial as evidence that the USD1 token may have been leveraged to curry political goodwill.

Critics argue that this selective exercise of presidential power undermines fairness in the justice system and further erodes trust in both government and financial institutions.

Binance’s image and the broader regulatory landscape

For Binance, the episode comes at a critical juncture. The exchange continues to face heightened scrutiny from regulators worldwide, even as it works to strengthen compliance frameworks and rebuild its global image. Teng has spent much of his tenure implementing governance reforms, enhancing internal controls, and improving transparency in response to ongoing U.S. and EU investigations.

Observers say Teng’s firm denial of any link to USD1 reflects his determination to steer Binance into a post-CZ era defined by corporate stability rather than personality-driven leadership. “Teng’s leadership is about institutional trust — not celebrity influence,” said one crypto governance expert. “He’s trying to transform Binance into something regulators can take seriously.”

Still, the controversy underscores how easily politics and crypto can become intertwined. The USD1 stablecoin, though a relatively small player in the broader digital asset market, has quickly evolved into a symbol of how tokens can serve political narratives as much as financial ones.

Bitcoin and the market ripple effect

The controversy also rattled crypto markets, with Bitcoin (BTC) experiencing sharp intraday volatility following Trump’s pardon announcement. BTC briefly surged past $103,000 before correcting, as traders speculated over the potential regulatory and political fallout.

Market analysts note that crypto’s increasing sensitivity to political developments underscores its maturation as a global asset class — but also its vulnerability to manipulation. “Every time Washington sneezes, Bitcoin catches a cold,” one analyst quipped. “Crypto has become a reflection of political confidence as much as economic fundamentals.”

The USD1 case also highlights the growing geopolitical use of stablecoins as tools of influence. From central bank digital currencies to politically connected tokens, the boundaries between financial innovation and political leverage are blurring faster than regulators can react.

Politics and crypto: a volatile alliance

The Binance-Trump-USD1 episode serves as a reminder that the future of crypto regulation will likely be shaped as much by politics as by technology. While Teng has sought to draw a clear line between Binance’s business and political controversies, the perception of entanglement may prove harder to erase.

As Binance continues to distance itself from its past and focus on compliance, the USD1 saga illustrates a broader truth: the crypto industry’s credibility hinges not only on innovation but also on its ability to resist politicization.

For now, Teng’s firm stance may steady Binance’s reputation — but the intersection of politics and digital assets remains as turbulent as ever.