Binance founder and former CEO Changpeng Zhao (CZ) has formally dismissed allegations of a business relationship with President Donald Trump, characterizing recent scrutiny over his 2025 presidential pardon as a misunderstanding of the exchange’s financial operations. Speaking in a recent interview with CNBC, Zhao pushed back against claims that his release from legal jeopardy was tied to political or commercial arrangements with the Trump family.
Clarification on Business Ties and the 2025 Pardon
The controversy stems from President Trump’s decision to grant Zhao a pardon in October 2025. The move drew immediate criticism from Democratic lawmakers, who questioned the nature of the relationship between the world’s largest cryptocurrency exchange and the executive branch. Addressing these concerns from Davos, Zhao stated, “There’s no business relationship whatsoever,” adding that the narrative surrounding the pardon had been “misconstrued.”
Zhao emphasized that he has never had a direct conversation with the President. “The closest that I got to him was today when he was doing the Board of Peace session,” Zhao told CNBC. “I was in the audience, about 30 to 40 feet away from him.”
The MGX Investment and USD1 Stablecoin
Central to the scrutiny is a March 2025 investment by MGX, an Abu Dhabi-based state-owned firm. MGX invested $2 billion into Binance using USD1, a stablecoin issued by World Liberty Financial (WLFI), a decentralized finance venture linked to the Trump family. Critics have pointed to the use of this specific stablecoin as evidence of a deeper connection between Binance and Trump-linked entities.
However, Zhao clarified that the choice of currency was dictated by the investor, not the exchange. “MGX is the investor. They choose USD1,” Zhao said. He explained that his primary requirement was for the transaction to be settled in digital assets rather than traditional fiat. “My request to them was they pay us in crypto. I don’t want to deal with banks, really.”
Official Responses and Lobbying Disclosures
World Liberty Financial has also moved to distance itself from the pardon controversy. David Wachsman, a spokesperson for WLFI, stated that the organization is not political and played “zero role” in the pardon process. “To imply otherwise is dangerous and false,” Wachsman said.
President Trump echoed this sentiment during a November interview with CBS’s 60 Minutes, stating he had “no idea” who Zhao was prior to the pardon. Trump noted he had been advised that Zhao was a “victim” of the previous administration’s regulatory actions.
Despite these denials, reports from NBC News highlighted Binance’s increased presence in Washington. During the week of the pardon, it was disclosed that Binance hired Checkmate Government Relations, a firm led by Charles McDowell, an associate of Donald Trump Jr. Disclosure filings indicate the firm received $450,000 to lobby the White House and the Treasury Department on “executive relief” and digital asset policy. Zhao denied any link between these lobbying efforts and his pardon, stating, “As far as I know, that does not exist at all.”
Market Performance and Regulatory Outlook
As the legal and political discussions continue, Binance’s native token, BNB, has shown resilience in the markets. At the time of reporting, BNB was trading at $893. While the token saw a 4% decline over the past week, it remains one of the stronger performers year-to-date, maintaining a 30% increase since the start of the year.
Binance continues to expand its international footprint, recently forming a new entity in Greece to pursue MiCA (Markets in Crypto-Assets) licensing. This move signals the exchange’s intent to stabilize its regulatory standing in Europe regardless of the ongoing political discourse in the United States.
Further details regarding the specific terms of the MGX investment and future lobbying disclosures are expected as federal filings are updated for the current quarter.
Join our Telegram Channel