Binance, the world’s largest cryptocurrency exchange, has been revealed to be providing behind-the-scenes support to a crypto venture owned by the Trump family, according to Bloomberg.
This aid comes at a time when Binance founder Changpeng Zhao (CZ) is seeking clemency from US President Donald Trump.
According to three sources familiar with the matter, Binance wrote the underlying software code for the stablecoin USD1, launched by the Trump family’s World Liberty Financial Inc. This technical support includes developing the “smart contract” that governs the creation of USD1. This coin was used in the spring when a United Arab Emirates-based investment firm purchased a $2 billion stake in Binance.
More than two months after this major transaction, approximately 90% of USD1 tokens in circulation are still held in Binance wallets, according to on-chain data. The interest income generated by these assets could generate tens of millions of dollars in annual revenue for the Trump family. Binance also introduced USD1 to its 275 million user base, a privilege often coveted by stablecoin issuers.
So, publicly available data and testimony from people familiar with the situation suggest that Binance was directly involved in the creation, promotion, and largest-ever transaction of USD1. However, it remains unclear whether Binance or Zhao received any payment from the Trump family for this service.
Binance’s statement said USD1 had gone through the exchange’s “standard listing process.” It emphasized that CZ was no longer CEO and that the amnesty application was a “personal decision.” Zhao did not respond to requests for comment.
The White House declined to comment. A spokesperson for World Liberty declined to elaborate on the relationship with Binance, but said, “Your allegations are baseless and intended to feed a political agenda.”
It’s unclear how the companies first made contact. However, two sources familiar with the matter claimed that CZ met with Steve Witkoff, a Trump associate and co-founder of World Liberty, at a Bitcoin conference in Abu Dhabi in December. At the time, Zhao had just been released from federal custody after a short sentence for violating anti-money laundering regulations, while Binance had paid over $4 billion in fines to US authorities.
A member of Witkoff’s inner circle denied that the meeting took place. Witkoff, previously appointed as a diplomat by Trump, was reportedly in the process of transferring his shares in World Liberty to his sons. White House Counsel David Warrington stated that Witkoff managed this process in accordance with ethical rules.
*This is not investment advice.
