CZ Denies Trump Pardon Link
CZ Denies Trump Pardon Link: Binance and the USD1 Stablecoin
Binance CEO Changpeng Zhao (CZ) has vehemently denied allegations linking his presidential pardon application to Binance's involvement with USD1, a stablecoin issued by the Trump-backed World Liberty Financial (WLFI). A recent Bloomberg report claimed Binance played a key role in creating the USD1 smart contract and promoted it to its vast user base.
Key Allegations and CZ's Response
- Bloomberg's Report: Claimed Binance created and promoted USD1, potentially influencing a $2 billion investment from MGX (Abu Dhabi) into Binance via USD1.
- CZ's Denial: Zhao refuted the timeline suggested by Bloomberg, stating his pardon request was unrelated to any dealings with WLFI.
- USD1's Market Position: At the time of writing, USD1 held a market capitalization of $2.2 billion, ranking among the top stablecoins.
While Bloomberg acknowledged uncertainty about payment between World Liberty and Binance, the report reignited scrutiny over CZ's past legal issues in the U.S. In 2023, Binance and CZ faced significant fines for violating U.S. anti-money laundering laws.
Previous Allegations and Market Reaction
This isn't the first time CZ has faced accusations of ties to the Trump administration. Previous reports alleging a Trump family stake in Binance U.S. were denied by Zhao. While he initially denied a pardon request, he later confirmed the application.
The recent news caused a minor dip in BNB's market performance. Glassnode data revealed a 5% decrease in daily active addresses (to 1 million) and a 20% drop in on-chain volume (to $467 million). However, funding rates remained flat, and BNB's price rebounded, trading at $690 at press time, up 14% from June lows.
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