Binance Faces Allegations Over USD1 Stablecoin Role Amid Trump Pardon Efforts

Binance, the world's largest cryptocurrency exchange, is facing allegations that it wrote the foundational smart contract code for USD1, a stablecoin issued by World Liberty Financial. This revelation comes amidst a broader narrative involving former Binance CEO Changpeng Zhao and his alleged efforts to secure a presidential pardon from former U.S. President Donald Trump.

According to reports, Binance's involvement in USD1 enabled the stablecoin to be used in a $2 billion investment by UAE-based MGX. Blockchain data indicates that approximately 90% of USD1’s total supply is held in Binance wallets. The token’s prospectus suggests that the Trump family could receive around $30 million annually from interest earned on reserves backing the stablecoin.

Binance has responded to these allegations by stating that the USD1 listing followed its standard process. A spokesperson for Binance emphasized that Zhao’s pardon application is a personal matter and unrelated to the company's activities. Zhao, who pleaded guilty in 2023 to anti-money-laundering violations, confirmed his pardon request during a podcast interview.

World Liberty Financial has denied the allegations, describing them as "factually deficient and designed to further a political agenda." Zhao has also denied previous allegations made by other media outlets.

Ethics experts have raised concerns about potential conflicts of interest. Richard Painter, a former chief ethics counsel, highlighted the unprecedented nature of a president whose personal financial interests conflict with their official duties. The Trump administration maintains that the President has no conflicts, citing a trust structure overseen by Donald Trump Jr. An ethics agreement released before Trump’s presidency stated he receives only general business updates.

Crypto initiatives tied to Trump have reportedly added at least $620 million to his fortune in recent months. Two sources indicated that Zhao met World Liberty co-founder and Trump ally Steve Witkoff at a Bitcoin conference in Abu Dhabi in December 2024. However, a person close to Witkoff denied the meeting took place.

Witkoff, now Trump’s special envoy to the Middle East, plans to transfer his World Liberty Financial interests to his adult sons, according to White House counsel. By mid-March, Binance and World Liberty were reportedly discussing a new stablecoin. Weeks later, World Liberty announced plans to issue a token on BNB Smart Chain, around the same time that reports surfaced about Zhao requesting a pardon from Trump.