Key Takeaways
- Binance founder denied claims that his presidential pardon application was linked to an exchange agreement with Trump-linked World Liberty Financial.
Binance [BNB] founder, Changpeng Zhao (CZ), has dismissed claims that he only sought a pardon from President Donald Trump after helping his crypto venture.
Source: CZ/X
He was responding to a Bloomberg report that alleged that Binance played a key role in creating the smart contract powering USD1, the stablecoin issued by Trump-backed World Liberty Financial (WLFI).
Claims against Binance’s CZ
The USD1 was launched in March 2025 and has grown to be the fifth-largest stablecoin with a $2.2 billion market cap as of press time.
Per the Bloomberg report, Binance not only created the stablecoin but also promoted it to its 275 million users.
The media outlet added that Abu Dhabi’s MGX invested $2 billion into Binance via the USD1 instead of a rival’s stablecoin.
But the publisher noted that it was not clear whether World Liberty paid Binance or CZ to create the stablecoin.
Of course, the accusations have reignited scrutiny around Zhao’s past legal troubles in the U.S.
He confirmed the pardon request, but rejected the timeline
In 2023, CZ and Binance were fined $50 million and $4.3 billion, respectively, for breaking U.S. anti-money laundering laws. In fact, CZ was forced to step down as CEO and was jailed for four months.
But this was not the first time CZ has hit headlines for alleged partnerships with Trump.
In May, the Wall Street Journal (WSJ) reported that the Trump family wanted a stake in Binance U.S. Zhao distanced himself from the report, calling it a ‘hit piece.’
Two other reports claimed that he had applied for a presidential pardon in May. He denied them, but later confirmed that he had applied for one after the reports.
BNB market reactions
Naturally, the market didn’t ignore the drama.
Source: Glassnode
The update saw a slight dip in BNB market traction. Per Glassnode data, BNB Daily Active Addresses declined 5% to 1 million, and On-Chain Volume dumped 20% to $467M.
Additionally, the Funding Rates remained flat, suggesting a cool-off into the weekend. At press time, BNB traded at $690, up 14% from June lows.
