Senators Demand Probe Into Binance-Trump Crypto Ties

Democratic senators have expressed concerns about the ties between cryptocurrency exchange Binance and President Donald Trump's digital asset ventures. In a letter sent to the US Treasury and Justice Department, the senators requested an investigation into these connections, citing potential conflicts of interest and regulatory concerns. The letter, co-signed by Senators Chris Van Hollen, Elizabeth Warren, Sheldon Whitehouse, and Richard Blumenthal, was addressed to Treasury Secretary Scott Bessent and Attorney General Pam Bondi.

The senators highlighted recent disclosures that Abu Dhabi-based MGX would use World Liberty Financial’s stablecoin USD1 to facilitate a $2 billion investment in Binance. This transaction, along with Trump's launch of his own memecoin and the exclusive dinner offer to top tokenholders, has raised questions about the president's influence over the crypto industry. The senators have requested an update on the matter by May 21, seeking details about federal oversight actions related to Binance’s compliance with its plea agreement.

The senators also asked for more information about Binance’s anticipated exit from the US market, including whether the exchange had inquired about listing a new stablecoin and if it had discussed a possible presidential pardon for its former CEO, Changpeng Zhao, with any officials. Zhao recently confirmed he filed for a presidential pardon after months of speculation about the move. He also recently met with the co-founders of World Liberty Financial in Abu Dhabi.

The senators argue that these transactions warrant further scrutiny due to Binance’s legal history and its interactions with the current administration. Binance and Zhao admitted in 2023 to violating US money laundering and sanctions laws. Zhao stepped down from his CEO role and served a four-month sentence in federal prison. Despite the company’s criminal record, the senators expressed concern that Binance continues exploring partnerships within the US, including with Trump-affiliated entities. The letter stated: “The notion that this administration might permit Binance to continue operating and expanding in the United States is deeply troubling.” It also referenced reports indicating that Trump family representatives had discussed acquiring a stake in Binance.US.

The senators' request comes at a time when the crypto industry is under increased scrutiny from regulators and lawmakers. The investigation into Binance's ties to Trump's digital asset ventures could have significant implications for the future of the crypto industry in the US. The senators' concerns about Binance's continued operations in the US, despite its legal history, highlight the need for greater oversight and regulation of the crypto industry. The outcome of this investigation could set a precedent for how the US government handles similar cases in the future.