According to reports, cryptocurrency exchange Binance helped create the code behind the stablecoin issued by World Liberty Financial (WLF), a cryptocurrency business associated with U.S. President Trump.
According to a report by Bloomberg on Friday, citing three informed sources, Binance played a role in creating, promoting, and facilitating the largest transactions of WLF's USD1 stablecoin. This cryptocurrency business, backed by Trump and his three sons, launched USD1 on March 4.
Abu Dhabi-based investment firm MGX announced on March 12 that it would invest $2 billion in Binance using the then-unnamed stablecoin. One of WLF's co-founders, Eric Trump, stated in May that the company would use USD1 to settle this investment.
As reported by Bloomberg, as of Friday, 90% of all USD1 tokens used in the transaction remained in Binance's wallets, potentially generating tens of millions of dollars in interest income for Trump and his family.
The relationship between one of the world's largest cryptocurrency exchanges and a business closely associated with the U.S. president has raised questions about potential conflicts of interest and the use of political influence for commercial gain.
Cointelegraph reached out to a Binance spokesperson and World Liberty Financial but had not received a response by the time of publication. However, Binance co-founder Changpeng Zhao (CZ) denied these reports in a post on X on July 11, suggesting that legal action might be taken. The executive stated:
Former Binance CEO Changpeng Zhao (CZ) pleaded guilty to a felony charge in 2023 as part of a settlement with U.S. authorities. Although he has served four months in prison, he indicated in May that he is seeking a presidential pardon from Trump.
Such a pardon could allow Zhao to resume management or operational roles in U.S. cryptocurrency businesses. As of the time of publication, he had not publicly commented on the report.
Trump's cryptocurrency business has been under scrutiny from many U.S. lawmakers since before he took office—this president made several promises during his campaign indicating that he would tailor policies for the cryptocurrency industry.
His financial entanglements include World Liberty Financial and its stablecoin, the launch of his meme coin Official Trump (TRUMP), and contributions from cryptocurrency executives supporting his campaign.
As the Bloomberg report was released, House Republican leaders were expected to consider three cryptocurrency bills, including legislation to regulate payment stablecoins in the U.S.
The GENIUS Act—named after one of Trump's many social media posts—has passed the Senate and is expected to go for a full House vote soon.
Although Senate Democrats initially blocked a key vote on the stablecoin bill citing Trump's cryptocurrency interests, the bill ultimately passed with bipartisan support. It remains unclear whether the bill has enough support to pass in the House, where Republicans hold only a slim majority. Trump has stated that he would sign the unamended bill immediately if it passes.
Related: U.S. Congress prepares for "Cryptocurrency Week," industry urges lawmakers to take action
Original: “Reports say Binance helped create World Liberty Financial's USD1 stablecoin”
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